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 Replies: 15 / Views: 2,204 |
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Valued Member
Canada
55 Posts |
Poll Question
There's been a lot of forum discussion about the Canadian senate's recommendation to discontinue the penny. Just curious about what the split was among people here on whether to keep or ditch the penny.
Edited by Jayson
12/20/2010 11:13 pm
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Valued Member
Canada
367 Posts |
Keep it! I need more time to get a 2006 magnetic  |
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Pillar of the Community
Canada
3692 Posts |
I say keep it. The dollar makes no sense without 1/100 of its own unit.
I've noticed that in places where it's customary to leave a tip, that they will already round up your change in hopes that they don't receive the pennies as tips. I hope this opens somebody's eyes, that we are devaluing currencies everywhere and only at the top of the command chain can it stop.
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Valued Member
Canada
51 Posts |
Well noboby involved in retail will be rounding their selling prices + tax down to the nearest cent. All will be rounding it up. They'll just change the retail price so when the relative taxes are added in the total cost will always be 3 or more, i.e. $19.53.
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Valued Member
Canada
367 Posts |
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Pillar of the Community
Canada
838 Posts |
yeah... well just $3.95 instead!
Seriously though, while my brain says ditch the cent (I voted to take it out), my heart says keep it!
The main groups I feel bad for are the charities. Many kids have been sent to Tim-camp (or whatever it's called) from our 1 cent discards!
It's for that reason I suspect the cent will never (as long as we use coins) be withdrawn. Maybe though we could pay off the Tim-kids, Lung Association,... from the proceeds of copper reclamation.
I also worry about getting stuck with my copper cent hoard at less than face value. People here on CCF often talk about what a copper cent is "worth" but it's extremely hard to find real live buyers at more than face.
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Moderator
 United States
188770 Posts |
This topic that always get me  https://goccf.com/t/68648https://goccf.com/t/73938I will keep beating this horse until it decomposes. First, electronic transactions (the vast majority of all transactions) will remain accurate to the cent. Second, sales tax is already properly rounded to the nearest cent; there is no reason why we cannot round to the nearest five cents. Third, any wise retailer, knowing that a cash transaction eliminates the vig to the banks for electronic transactions, will probably round the total down just to make an impression on a cash paying customer. And if he does not do it, his competitor will! |
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Pillar of the Community
Canada
838 Posts |
jbuck: Yes, those points you make are obvious.
larryt: Don't worry -- it will be impossible for the retailer to design prices based on rounding, simply because customers buy varying quantities of items in their shopping basket. Averaging takes place on the total, not item-by-item.
The shopper could try to skew the rounding (at most a 2.49 cent gain) but then again (as jbuck points out), he already has the opportunity to save up to 0.49 cents by designing his shopping basket appropriately. Who cares?!
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Pillar of the Community
United States
2408 Posts |
I understand the economics and the reason behind the elimination of the penny. It has become irrelevant. All because of inflation.
But I've often asked myself: what's wrong with "deflation"? Why is THAT not happening as often as inflation?
Just a thought.
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Pillar of the Community
Canada
4944 Posts |
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Moderator
United States
188770 Posts |
Do not get me wrong, I love collecting the cents (from both sides of the borders, though my current location makes filling my Canadian cent collection rather difficult). I believe that the cent should at least continue in the mint and proof sets. Our Kennedy half dollar is still being minted, but only for collectors. I see no reason why the Lincoln Cent could not continue as well. The truth is that most people do not care about cents. Most are lost to landfills and couch cushions. It could be a case of not knowing what you have until it is gone, but I believe people will adapt. Consider this: We use to have a half-cent coin. It is not longer made. We survived.  |
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Moderator
United States
188770 Posts |
Quote:
But I've often asked myself: what's wrong with "deflation"? I am not an economist, but this probably says it best. Your impression may vary, so check the sources... Deflation - EffectsQuote:
Deflation is generally regarded negatively, as it causes a transfer of wealth from borrowers and holders of illiquid assets, to the benefit of savers and of holders of liquid assets and currency. In this sense it is the opposite of inflation, which is similar to taxing currency holders and lenders (savers) and using the proceeds to subsidize borrowers. Thus inflation may encourage short term consumption. In modern economies, deflation is usually caused by a drop in aggregate demand, and is associated with recession and (more rarely) long term economic depressions. Quote:
Why is THAT not happening as often as inflation? Inflation favours the borrower. They borrow at a high value, pay back at a lower value. Almost like a negative interest loan. This is why we have continual debt. What we pay off in today's dollars bought a lot more value when it was borrowed. |
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Valued Member
Canada
311 Posts |
What denominations from the past are not valid currency today and what values do these coins have? I am sure that some of them were taken out of circulation, but have increased in value for collectors.
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Pillar of the Community
Canada
838 Posts |
True enough Al - I just wish I had 150 years to wait!
(Now 80% of a pillar! Does that make me a pole?!)
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Pillar of the Community
 Canada
9865 Posts |
All Canadian coins(including Newfoundland) minted since 1858 are still legal tender,none have been demonetized. The penny,I'm sure,will still have value,you'll just have to spend them five at a time. The 50cent piece is no longer issued for circulation but is still available to collectors every year.I hope the RCM does the same with the penny. . . bibd,it took me a while,I thought you were refering to pilar 8 reales,and wondered how could a little more than 6 bits equal a pole.I guess since I'm only 2/3 of the way there,I'll take the PILL I've earned and be more alert. Edited by DBM
12/22/2010 10:58 am
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Moderator
United States
188770 Posts |
Quote:
The penny,I'm sure,will still have value,you'll just have to spend them five at a time. Not necessarily. Again, transaction totals will still be to to cent because a super-majority will pay electronically. Those that pay cash will get rounded, and probably rounded down even if should go up. If you offer some cents to make it exact, I doubt they would complain. A real world example for you is one of my favourite lunch spots (a true mom and pop shop). Mom always rings up lunch totals to the exact cent (you can see it on the register). If you pull out a credit card she will say the exact price. If you start fiddling for cash she will round it down, usually to the nearest dollar. |
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Replies: 15 / Views: 2,204 |
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Posted 12/21/2010 09:17 am
