Three days ago Canada cut the use of the penny. Many economists including Gregory Mankiw says we should too. The reason is that the penny is , "a waste of time", losing its usefulness, and people would much rather round up to the nickel.
"When people start leaving a monetary unit at the cash register for the next customer, the unit is too small to be useful,"
What do you think? Is the penny a necessity or a sentimental attachment? What may be some aftereffects if we do get rid of it?
There would be a lot of "aftereffects", in the sense that various taxes and consumer goods-prices would be rounded up. Few firms would openly choose to round down for the most part.
ReplyDeleteHowever, I'm totally in favor of banning the penny. Simply put... as a guy, most of us don't carry around change. There's enough stigma carrying a satchel or "murse" as it is. I can't even imagine the social backlash from men carrying coin-purses. So rather than jingle around all day, most of us resort to simply not carrying change. Just a personal perspective with a bias obviously, but I wouldn't miss pennies at all if they disappeared.
I agree with Andrew. I think the penny is a colossal waste of time and effort. I usually just leave mine at the counter.
ReplyDeleteIn terms of economic impact, I think that most firms would round prices up and make slightly more money.That little bit more money for businesses could lead to some more employment in the long term as they would have a little more money to hire another employee, or even better, invest in capital equipment.
I hate pennies. It cost about 1.6 cents to make a penny, they're worth 1/100th of a dollar (which seems impractical now a days). Plus, they dont even work at vending machines and parking meters making them pretty useless unless you're paying for something in person. The only reason they are around is nostalgia.
ReplyDeleteTheres nothing i hate more than when I need change, reaching into my pocket and pulling out a handful of worthless pennies. If I have to go out of my way to use a unit of currency, It is a waste of time and money. I completely agree with all the above statements.
ReplyDeleteI think that getting rid of the penny would be a wise choice, considering that it is rarely used. I myself always let the cash register keep any pennies I receive back from a transaction. I know that in Germany, paying in exact change is normal... men carrying around purses is expected, and people would wait in later for 10 minutes waiting for the customer to find the exact change needed to pay for their item. I think there is two choices, we either start paying in exact change, using more of our change, or we get rid of it all together. If there was more mobility with the penny, I think it could be more useful. As for now, I wouldn't mind the penny disappearing.
ReplyDeleteI also believe that the penny should be discontinued. I just do not see the value of keeping the penny in existence, but if anyone has a valid point to why the penny should stick around, I would love to hear it.
ReplyDeleteI HATE dealing with change. I can't for the day when the almost all exchanges are electronic.
ReplyDeleteOkay the murse comment? Really? Men and Women really don't differ in their "ability" to carry change. Maybe we could stay on topic?
ReplyDeleteMen and women COMPLETELY differ in their ability to carry change. Because women carry purses...and men carry wallets. Its just socially how we are constrained to operate. Its not off topic, because a discussion about the necessity of pennies--deals directly in how we carry them.
DeletePersonally, I prefer that penny should be discontinued. Penny/ coin is not commonly used in my home country so when I come to US, I have to learn how to use penny. For me, penny is a sentimental attachment and an American culture so it is not easy to get rid of penny. Even though consumers ignore the value of penny, the majority still object to give up the coin.
ReplyDeleteI agree with Andrew and his reply to Caroline.
ReplyDeleteRight from the beginning of the article I questioned what the point of having a penny is if it is "a money loser for the treasury." I won't be sad if/when the penny disappears in America. However, I do not like the idea of getting rid of the dollar bill and having coins instead. No thanks.
Being able to carry pennies does not mean you will have use for them. Lets not argue on men vs. women's ability to carry them. I think think they should be go.
ReplyDeleteAnyways the whole concern about rounding up prices is really not sound - how many people still rely on cash? The study referenced in the article is questionable. I would love to read the whole paper.
Although the penny may seem useless, I actually love the penny. It's so useful when you just need a couple pennies to give the cashier so you receive dollar bill in change instead of a bunch of change. I loved when I was little and I would wrap all my pennies up that I had saved over the year and use the money to buy Christmas presents. I will definitely be a little sad if the penny is discontinued.
ReplyDeleteGet rid of the penny! Their only use is for me to pick them up off the ground, look at the date, and hope for an old/Wheat penny!
ReplyDeleteThe penny should absolutely be given up. It states in the beginning of the article that it costed more to ship the pennies than what the pennies themselves are worth. How many times do people start change buckets filled with pennies and just let them fill up for years without using them. It is harder to use a penny today than it has ever been in the sense that everybody either uses credit or debit or just pays in paper currency. The only real use for pennies is businesses giving back change. Personally, I think we should get rid of change altogether. It all accumulates under the cushions of my couch or in jars that barely get used.
ReplyDelete