It now costs 2¢ to make a US penny

Discussion in 'Politics, Religion, Social Issues' started by senseless, Jan 5, 2013.

  1. macrumors 65816

    senseless

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    Apr 23, 2008
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    Pennsylvania, USA
    #1
    2¢ to make and distribute a US penny, 11¢ for a nickel. I know the government is inefficient, but this is silly.
     
  2. macrumors 65816

    citizenzen

    Joined:
    Mar 22, 2010
    #2
    I rarely carry cash. There's just so little need for it these days.

    I'd be totally open to not only getting rid of pennies, but getting rid of cash altogether.
     
  3. macrumors 604

    wordoflife

    Joined:
    Jul 6, 2009
    #3
    When it comes to keeping it or getting rid of it, then perhaps (depends if you're for or against the the issuing of pennies). But the price has gone up due to economic market conditions.
     
  4. macrumors P6

    dukebound85

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    #4
    I would not be fine with that.

    I like the anonymity that cash provides, not to mention that anybody can accept cash when you are in a bind business and individual. Can't say the same for plastic.
     
  5. Moderator emeritus

    SilentPanda

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    #5
     
  6. macrumors 65816

    citizenzen

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    #6
    I get that. But anonymity would only work if you converted most or all of your money into cash for purchases, bill payments, etc.

    Do you really live that way?

    I sure don't.

    About the only purchases I make that require cash are at local farmers markets. Otherwise, I'm virtually all card. All my major monthly bills are handled through online banking. I might go the whole month with a dollar in my wallet ... if that.
     
  7. macrumors P6

    Peace

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    #7
    The idea of interest rates will keep the penny around for a long,long time.
     
  8. macrumors 603

    thekev

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    Aug 5, 2010
    #8
    Why is that? Other countries have been okay with rounding up or down to the nearest 5 cents or greater. No longer minting worthless currency would be a good starting point in cutting spending.
     
  9. Moderator emeritus

    SilentPanda

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    #9
    Just because most people use a credit card for virtually all purposes, doesn't mean cash itself should be eliminated. People lose their cards, people shouldn't be required to use banks, companies shouldn't be required to use credit/debit card processors and cash is an excellent way to perform person to person transactions.

    It's also an excellent reminder to yourself that your cash is finite instead of just a number in your bank account.
     
  10. macrumors 6502a

    afireintonto

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    #10
    How are you supposed to buy drugs?
    :cool:
     
  11. macrumors P6

    Peace

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    #11
    The United States is not other countries as evidenced by the corporate/political environment .
     
  12. macrumors 604

    wordoflife

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    #12
    Rounding to the nearest 5 cents isn't going to fix anything. People will start using more nickels and they're 11 cents to make (6 cents higher than their worth).
     
  13. macrumors 6502a

    Joined:
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    #13
    With Square card readers for iPhone and Android of course. #


    In all seriousness. I'm all for the rounding system.

    ......
    People seem to forget it cost the exact same amount to make a $1 bill and a $100 bill. Which is the most profitable business in the world.
     
  14. macrumors P6

    dukebound85

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    #14
    I use cash quite a bit. I use my card for online and gas but everything else tends to be cash and checks

    How I was brought up. To each his own
     
  15. macrumors 65816

    Zombie Acorn

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    #15
    I guess that will stop them from minting their way out of debt.
     
  16. Moderator emeritus

    SilentPanda

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    #16
    Can you go into more how we couldn't do this due to interest rates though?

    We should get rid of pennies and nickels then. Both are fine to junk.
     
  17. macrumors 68040

    obeygiant

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    Michigan
    #17
    They should just stop making it for a year and recoup that money. I'm sure we'll make it.
     
  18. macrumors 604

    wordoflife

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    #18
    Consumers would then be hit with a higher rounding tax.
     
  19. macrumors 604

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    #19
    I remember when the NZ government had to start building one and two dollar coins out of more expensive material, as it was becoming viable for people to counterfit them... And seeing as coins have few of the security features that notes do, they would have been successful.

    ----------

    And how are tradesmen supposed to do cashies? :cool:
     
  20. Moderator emeritus

    SilentPanda

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    #20
    You can round up and down. If you make a bunch of small transactions every day you might "suffer" but if you only make a few purchases a day at most it's highly unlikely you'd notice either way.
     
  21. macrumors P6

    Peace

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    #21
    snip


    I should have said interest rates and taxes.

    It's simple. Any amount to the right of the decimal point has to be accounted for and often ends in more than one decimal point.

    As far as taxes many government's both federal,state and local have tax rates with many decimal points to the right. This almost always ends up with pennies or nickels.
     
  22. macrumors 603

    thekev

    Joined:
    Aug 5, 2010
    #22
    I know that. What is your point relevant to this specific circumstance?

    You could round to the nearest quarter. If they're going to keep making such currency, they should look for ways to cut costs unless the number minted annually is something fairly trivial. Consider the value of the penny when it became a unit of currency relative to today.
     
  23. macrumors 68000

    Sydde

    Joined:
    Aug 17, 2009
    #23
    Half the money in the US economy does not exist as anything other than magnetic fields on some hard-drives somewhere. Trillions of dollars. So, eliminating the physical penny will only affect cash transactions, which are becoming less and less common. There is no reason to round the abstract numbers merely because you lack the physical object that represents them.
     
  24. macrumors P6

    Peace

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    #24
    Go study up on GAAP. Basically pennies add up to billions of dollars for economies.
     
  25. macrumors 6502a

    afireintonto

    Joined:
    Jul 22, 2008
    Location:
    Portland
    #25
    Pretty soon we'll be using IFRS not that our change will have any effect on how volatile pennies are.

    I'm under the tent that says we get rid of coins. But we can still use decimals in electronic transactions, and obviously that includes interest and other transactions that are automated.
     

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