Lately I have gotten the stint that the Penny should be removed from circulation. The reason for this is, it is a piece of copper that hardly stands for anything except filling our pockets with worthless metal. Nothing costs a penny anymore, except taxes. For that, the penny is a useless coin in today's currency.
Currently, it costs more than a penny to produce a penny. It ranges from 1.4 cents to about 3 cents for the metal to make it from the copper and zinc mines to a person's pocket. The estimates could be higher. So why produce a product that costs more than the face value? Why not make 2-cent pennies? That sounds counterproductive, so remove the penny. Save Lincoln for the 5 dollar bill, he just looks just as great to remain there instead.
I know people who simply throw away pennies. Yes, they are worthless and that is why most donation boxes contain mostly pennies. Consumers don't want to carry change, especially pennies because of their serious depressed value. So why do our politicians seem to care about pennies when they care mostly about millions, billions, and trillions of dollars? It takes 100-million pennies to even equal a million dollars and if it costs three-million dollars to create one million pennies, the government is wasting two-million on making a coin that values 1/3 the cost of creating it. (Note, this is just an exaggerated figure, but a scalable one).
So, remove the penny. Now what does that do for everyone? For those who shop, everything will be rounded off to a 5-cent figure. Now does that sound to be hard? Even with taxes, things can come to a nice 5-cent number. That way, we can use more nickels, dimes, and quarters to pay for virtually everything. Of course, this may seem like a backlash to remove the copper coin, but every purchase is getting more and more expensive that pennies are proven to be nothing for the item but valueless to the actual cost.
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2 comments:
My thoughts exactly, well maybe not exactly.
I think pennies, nickles and quarters should be removed. A dime should be the smallest legal trade vehicle, perhaps call it a centy (twenty, thirty, forty, kind of goes with the theme) and introduce a 5 centy piece.
I suspect you are American. In Canada we have monster sized $1 and $2 coins. I think these should also be replaced with smaller $1, $2 and $5 coins.
So, you have:
A centy the size of a dime
A 5 centy the size of a penny
A $1 the size of nickle
A $2 the size of a quarter and
A $5 the size of a current 50c piece, all smaller than our Canadian loonie.
Now you have a much more functional monetary system again.
And, by revamping the monetary system, you could make the 5 centy in copper, the $1 in nickle, the $2 in bronze and the $5 maybe a silver copper mix?
I don't like the rounding to 5 cent idea at all, reducing a whole decimal is much easier in the bigger picture.
Of course, it may sound like rounding everything to a five-cent system, the tax system needs to be reworked in order to allow for things to priced correctly to the closest five-cents.
In Portugal, I was glad to see that most everything was rounded to a five or ten cent value and everything there already reflected the tax included. I think that the advertised full price--tax included--makes for paying for products and services easier than fumbling for worthless pennies and guessing how much the sales tax is.
I really thought the system of having 1€ or 2€ coins was easier than handling paper money. Instead, they had 5-cent, 10-cent, 20-cent, and 50-cent pieces that were used more than the 1 and 2-cent Euros.
Changes in the metals for coins isn't necessary, that would cause confusion.
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