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 Replies: 21 / Views: 3,185 |
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Pillar of the Community
708 Posts |
Okay, this thread is to debate the idea of getting rid of the cent, otherwise known as the "penny". Since reading Basebal21's post about opposing getting rid of the cent, due to charities collecting so much money in cents, and the government doesn't really want to mint cents anymore, due to the cost of a cent being more than a cent, I've proposed this idea: Why not reissue the 2 cent coin for general circulation, just as the Euro issued a 2 cent Euro coin, and issue a lot less one cent coins, to assure the new 2 cent coin's successful circulation? (This is the same idea as I proposed to get the half and $2 bill to circulate, by minting less quarters and minting more halves and printing less $1 bills and printing more $2 bills, to let the halves and $2 bills fill the void created by the cut back productions of quarters and $1 bills) With a well circulating 2 cent coin, the government can save hundreds of millions of dollars annually by producing less one cent coins. I KNOW they would STILL be "losing out" as I'm sure the new 2 cent coins would cost more than Two Cents to mint and distribute, but why not "save" and "reduce" what costs they can, if they can produce less of one coin denomination, by producing some of another coin denomination? Then we can upgrade all cash drawers to have the "eight" coin slot configuration, like Bm0ney's in Canada. 1c, 2c, 5c, 10c, 25c, 50c, $1, and $2 (IF we went to $1 and $2 coins instead of polymer $1 and $2 bills as I mentioned in another thread) What is everyone else's opinion? |
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Bedrock of the Community
13014 Posts |
Judging by the Two Cents short run I would say it faced problems even back then being accepted. From a purely financial point though it could make sense if the losses were less than on a penny. What I mean is is a penny costs say 1.7 cents to make but the 2 cent only costs 2.5 cents there is a small savings that would add up over time but if it cost 4 cents that would be counterproductive. To me the financial aspect of it would be the first thing that needs to be figured out. If theres no potential savings from it the idea stops there. If there is a potential savings then it could be worth looking into the other issues. |
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Moderator
 United States
14463 Posts |
 the Two Cent coin will have/cause problems. Most of the U.S. coin system seems to be based around multiples 5: 1(nickel), 2(dime), 5(quarter), 10(half dollar), 20(dollar). Use of a 2 cent coin would cause issues with use of the 5 cent nickel and 25 cent quarter. Machines would need to be changed or adapted for production of the new coins, and the production process may be altered.  |
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Bedrock of the Community
United States
17884 Posts |
Bad idea. Currently the one cent costs between 2 and 2.4 cents apiece. A Two Cent Piece based on the same material would cost around Three Cents to produce. We are wanting to get rid of a coin that is losing money because it costs more than its face value to produce. Why introduce a new coin that is already a money loser? |
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Bedrock of the Community
Australia
21786 Posts |
Nope! Australia got rid of the one and Two Cent coins. Minimum face value for a coin is now five cents. Nobody complained at their demise, except for a few at the beginning. No one laments them now. Even now, I find the five cent coin slightly annoying, but I understand the current need for it. |
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Moderator
Australia
16806 Posts |
Any savings made by issuing 2 cent coins instead of 1 cent coins would be temporary and quickly disappear. At current rates of inflation, in just a few years, the cost of issuing a 2 cent coin, no matter what it is made of, would outstrip the cost of production. Eliminating a denomination costs a government nothing; adding a new denomination costs the government a lot, in advertising, mint retooling, subsidies to vested interests, etc.. Given such a relatively short anticipated lifespan, it would be a foolish waste of resources to go to all the trouble of introducing a new small coin denomination to replace a slightly smaller one.
Any country with any sense whatsoever stops producing coins as soon as they cost more than their face value to make. It is futile to argue that loss-making coins can be subsidized by issuing more profit-making high-face-value coinages. Every single coin a government makes must earn the government making it some profit, otherwise there really is no point in their continuing to make it.
Don't say "infinitely" when you mean "very"; otherwise, you'll have no word left when you want to talk about something really infinite. - C. S. Lewis
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Valued Member
United States
446 Posts |
We had a Two Cent coin once. It wasn't exactly a resounding success. |
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Pillar of the Community
United States
807 Posts |
Absolutely not.
While I cannot see any reason why the suitability of any denomination of coin should be judged on whether it produces a profit for the issuing authority (we see, for example, the coinage of gold at public expense in England & other countries from the time of Charles II onward), it should be obvious that only those coins should be issued which are useful in making change. If any denomination is to be revived, it should be the 3-cent piece, but only if the 1 & 5 cent coins are both suppressed.
I have some hope that the turmoil of recent years will aid people to wake up to the need to restrain the excesses of financiers, & to reject the principle of continuous depreciation. Remember, the US has deliberately deflated its currency before! But even if we were to adopt a policy target of 1~2% annual appreciation (which, judging by how these things typically work out, would probably result in approximate stability), no appreciable need for a denomination below five cents would arise for decades.
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Pillar of the Community
United Kingdom
1682 Posts |
I have traveled to places where the lowest amount similar to the US 5 cent coin. Rounding to an even 0 or 5 works fine.
I rather see the US get rid of the 1 cent coin rather than add a 2 cent coin.
In the UK, I put all of the 1 pence, 2 pence, 5 pence coins I get in change in a jar and deposit them back into the bank when it gets full.
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Bedrock of the Community
United States
20753 Posts |
I'm for keeping the 1 cent coin. Also, to start making the 2 cent, 3 cent and possibly even a 4 cent coin. Naturally keeping the Nickel too. I also like to reinstate the 20 cent piece. 50 cent coins should be recirculated and the larger dollar coins too reinstated. Then stop all the paper bills below a 20. Then stand back and watch people trying to figure out what is what when they buy stuff.   I really wonder if the government cares what we want, need or can use. |
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Pillar of the Community
United States
9792 Posts |
I love Two Cent coins but see absolutely no reason for a new issue today. "Buy the Book Before You Buy the Coin" - Aaron R. Feldman - "And read it" - Me 2013! ANA Life Member #3288 in good standing since 1981, ANS, Early American Coppers Member (EAC), Colonial Coin Collectors Club member (C4), Conder Token Collector Club member (CTCC), Civil War Token Society (CWTS) member, Liberty Seated Collectors Club (LSCC) & Numismatic Bibliomania Society member (NBS), USMex, Member in good standing, 2¢ variety collector. See my want page: http://goccf.com/t/140440 |
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Bedrock of the Community
United States
11951 Posts |
I don't think the government will ever put out a new denomination coin. The majority of people in the United States do not want to change anything. Businesses are set up for the coin and currency that we are using now. Cash registers do not have space for extra coin or bill denomination. Coin operating machines are set up for what we currently use and it would be to costly to change. If anything will happen the one cent and one dollar bill might be dropped. Government studies show this would save tax payers money. They have known this for many years, but we are no closer to this happening. Even if a new Two Cent coin was made, it would not be a copper coin like the classic Two Cent coin. Chances are it would be cheaply made coin that no one would want to collect. |
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Pillar of the Community
United States
1796 Posts |
Edited by SteveCaruso
07/28/2013 10:42 pm
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Moderator
United States
187654 Posts |
Quote:
What is everyone else's opinion? Possibly your worst idea ever.  We are already at the point where the dime should be the lowest denomination. Bringing the Two Cent coin back would be beyond absurd. |
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Pillar of the Community
Canada
2805 Posts |
I thought Americans hated change - or at least my price catalog is full of strange denominations that nobody liked. Besides, an (expensive) two-cent coin trying to make it through Congress would just take attention away from the vastly more important drive to get rid of the $1 bill.
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Moderator
United States
187654 Posts |
Quote:
Besides, an (expensive) two-cent coin trying to make it through Congress would just take attention away from the vastly more important drive to get rid of the $1 bill. Worth quoting and liking.  |
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Replies: 21 / Views: 3,185 |
Posted 07/28/2013 04:36 am
