Eliminating The Penny

Many of the same arguments we've heard before but conveniently in one place.

Canada did this after 2012. Australia did this after 1990. I know in Canada there was an initial outcry from some who wanted the penny maintained. Now no one cares. It really didn't negatively impact anything. If you pay with cash, retailers round to the nearest five cents. If you pay with plastic, you still pay the exact amount to the cent. The U.S. should have done this years ago, along with eliminating the dollar bill for a dollar coin and switching to the metric system! One step at a time though.

It seemed to me that some of the arguments made on both sides were inaccurate. Some interesting reading but not well thought out. By the way, I am in favor of eliminating the penny.

I think we should really keep the penny. Sounds nutty but what would happen to all those songs that use the Penny in them?

IMO the CENT for use in circulation ought to be eliminated from production.
It costs more to produce than it's worth.
BUT
How about being struck as special items, like half dollars are?
Then the Mint could charge enough to make them profitable AND the collecting community could get some satisfaction.

People tell you to give them your Two Cents worth, then they say they want a penny for your thoughts. Somewhere someone's making a penny. Steven Wright

Con #1 refutes Pro #2 If 2/3rds of the cent produced make a one way trip from the mint to the consumer and then aren't used again it kind of makes the argument that they can be used for decades rather weak.

Pro #1, Eliminating the cent should have no effect on consumer prices because prices can still be listed in odd numbers of cents. Rounding doesn't take place until after sales tax is applied.

Pro #3, as Jbuck said eliminating the cent would probably INCREASE the amount received by charities. Donations of that type are usually made by giving whatever small change people have on them. Elimination of cents would probably mean people would have more nickels and dimes on them. My guess is donations would increase.

Now problems with the Cons

Con #2 Do you expect me to believe that if we stopped making the cent it would stop copper and zinc mining? Or pollution from transporting things? Eliminating the cent isn't going to reduce either of those in any significant way.



But with rounding sales tax comes out in nice even nickels. Sometimes it rounds up, sometimes down and in the long run it comes out even, and no need to have any one cent coins. Besides if you want to pay the exact sales tax you would need Half Cent and Mil coins as well. Buy something for 95 cents with a 7% sales tax you need a nickel, a cent, a Half Cent, and two mills, and that is still rounded up not exact. If you are going to complain about rounding to the nickel you need to be complaining about the current rounding to the cent.

The reasons for them in the article are beyond ridiculous. Should be elimited entirely, no inclusions in sets. Millions would be saved, including transportation costs.