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 Replies: 11 / Views: 879 |
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Rest in Peace
United States
1729 Posts |
I've seen some arguments for discontinuing the minting of USA cents entirely, mostly because it costs more than a cent to mint each one. (... And the cost of minting a nickel is creeping upwards, so the same arguments are being made for discontinuing it).  Would it not make sense to simply up the cent to a two-cent denomination by 2010, keeping the current Lincoln obverse on a slightly-larger or even smaller coin? (And while we're at it, let's go back to a somewhat updated wheat ears obverse - maybe the same graphics but more modern lettering.) During the period that the cent is gradually disappearing from circulation, manufacturers' barcodes could be updated, and merchants who still take cash would have ample time to round up prices - hey, there's an economic stimulus right there! Discuss. I'd like to see YOUR Two Cents worth ...  |
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Pillar of the Community
United Kingdom
1077 Posts |
 I'm sitting comfortably, let the discussion begin! |
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Moderator
 United States
187582 Posts |
It is my opinion that the Lincoln Cent (and possibly the Jeffererson Nickel) should both be minted for collectors only. If one or both are removed from circulation, there is no need to round individual prices; just round the final total of the purchases. Also, electronic transactions would still be calculated and tendered to the exact cent. Keep in mind, transaction totals are already rounded to the nearest cent because of sales tax. Rounding totals to the nearest 10 cent value would even out over the course of many transactions. For those worried about getting ripped off: if someone tries to round up a $10.92 tab to $11.00 and then call them on it! As for a Two Cent coin, I would not be opposed to it as a solution, but I feel that would be delaying the inevitable. Finally I will say what I have said in numerous other threads: our country did not collapse into a quantum singularity when the Half Cent was discontinued! |
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Rest in Peace
 United States
1729 Posts |
So are there any economists here who could estimate how much the economy would be "stimulated" (or not) if retail, over-the-counter-for-cash transactions were rounded up by Two Cents, five cents, even a dime if the cent and nickel were abolished? I've been playing with my foreign coins, bagging duplicates for an eventual pound-for-pound trade-in. My mind is boggled when I handle a five-dollar bimetal coin from Jamaica, knowing that it's worth maybe a cent or two now. My mind is even more boggled when I spot one-cent and five-cent pieces, knowing that they're not worth flyspit any more and probably are worth more as melt than as currency. I would hate to see any the Lincolns turned into melt, and even more to see the Victor D. Brenner obverse design retired after 2009. Hence, my proposal to bump it up to a larger-denomination coin. (I'm not sure I can see replacing Jefferson with Lincoln, but I wouldn't oppose moving him up to the dime!)  |
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Moderator
United States
187582 Posts |
Quote:...over-the-counter-for-cash transactions were rounded up by Two Cents, five cents, Not rounded up. Rounded to the nearest, up or down, just like sales tax is now.  |
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Pillar of the Community
United States
1882 Posts |
Quote:if retail, over-the-counter-for-cash transactions were rounded up by Two Cents, five cents, even a dime if the cent and nickel were abolished? Like jbuck is saying, you can't ignore the ones that would be rounded down. And if the nickel went away, the most a transaction could ever be rounded is 5 cents (not a dime). In a perfectly random world, rounding up would happen a little more often than rounding down (if those ending in 5 cents always go up). But I would say keep the nickel. Edited by steve199
01/15/2009 12:39 pm
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Valued Member
United States
405 Posts |
You'd better believe that all prices will be rounded UP.....I hope the penny is not done away with,as,this would help the rich get richer and the poor get poorer,a few pennies at a time!
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Pillar of the Community
United States
3294 Posts |
Well here is how I see the rounding issue.
1. Most probably items will not automatically be rounded up, may even automatically be rounded down.
2. Rounding would only be done on the total, not each item.
3. Rounding would only effect those using cash
4. Worst case scenario, you lose 4c each time you check out. If you go through the checkout line an average of 1 time a day, always using cash, you lose $15 a year. Wow.
So unless you are an avid shopper who goes to 5 stores a day, 7 days a week and always use cash, the losses are very minor.
These are the things I learned while living in Australia, and when they cut out the 2c coin, their economy did not collapse. Neither would ours.
Edited by nod2003
01/15/2009 4:09 pm
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Moderator
United States
187582 Posts |
Quote:
Well here is how I see the rounding issue. I say you see it correctly!  |
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Pillar of the Community
United States
5318 Posts |
Quote:As for a Two Cent coin, I would not be opposed to it as a solution, but I feel that would be delaying the inevitable. My initial reaction as well--it would amount to a transitional coin, and what would be next? Quote:
Worst case scenario, you lose 4c each time you check out. Moreover, if every price ends in a 0 or a 5 (as well as sales tax rate), the issue is moot. I once lived in a country where 5c was the lowest denomination, and never gave it a second thought...nothing was priced as 29.99 for instance. |
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Rest in Peace
United States
3730 Posts |
Stop minted pennies (cent) and nickels for circulation. Do continue to mint pennies and nickels for collectors.
Do as the Canadians do, and manufacture metal dollars and metal 2 Dollar coins.
Eliminate the paper Dollar Bill.
Save millions and give us some new coins to collect.
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Moderator
United States
187582 Posts |
Well said, Gary! |
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Replies: 11 / Views: 879 |
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Posted 01/13/2009 4:30 pm
