The Tyranny of the Penny

[candycorn]

America Must Free Itself from the Tyranny of the Penny

Few things symbolize our national dysfunction as much as this accursed coin, which we mint by the millions because it’s too worthless to spend.

www.nytimes.com

Interesting article about the Penny and how it highlights our dysfunction as a nation. I've often said that we're not "adult" enough to admit when things aren't working or when things do not work as well as they should (in my case, often remarking about our 237 y/o business model and thinking it doesn't need regular updating to remain relevant). This article is along those same lines.

 

[rampart]

America Must Free Itself from the Tyranny of the Penny

Few things symbolize our national dysfunction as much as this accursed coin, which we mint by the millions because it’s too worthless to spend.

www.nytimes.com

Interesting article about the Penny and how it highlights our dysfunction as a nation. I've often said that we're not "adult" enough to admit when things aren't working or when things do not work as well as they should (in my case, often remarking about our 237 y/o business model and thinking it doesn't need regular updating to remain relevant). This article is along those same lines.

a penny costs more to produce than 1 cent. it is irrelevant in any transaction worth transacting, and will be with us forever

paper singles are equally useless. why don't the dollar coins ever catch on?:

we are long overdue for a devaluation.

 

[j-mac]

Getting rid of the penny would result in higher pricing, harming the poor.

“Mark Weller, Executive Director of the pro-penny group Americans for Common Cents, says, “The alternative to the penny is rounding to the nickel, and that’s something that will negatively impact working families every time they buy a gallon of gas or a gallon of milk.” [6]

The US Federal Reserve found that minorities and low-income people are more likely to use cash than credit cards. [7] Raymond Lombra, Professor of Economics at Pennsylvania State University, says the extra rounding charges would exceed $600 million annually and would “be regressive, affecting the poor and other disadvantaged people groups disproportionately.” [9]

One study found that penny rounding in Canada costs grocery store customers an estimated 3.27 million Canadian dollars (2.5 million USD) annually. [9]”

Should the Penny Stay in Circulation? - Top 3 Pros and Cons

Proponents of keeping the penny say the coin keeps consumer prices down. Opponents say the coin has practically no value. Explore both sides of the debate.

www.procon.org

 

[candycorn]

a penny costs more to produce than 1 cent. it is irrelevant in any transaction worth transacting, and will be with us forever

paper singles are equally useless. why don't the dollar coins ever catch on?:

we are long overdue for a devaluation.

Not sure about how devaluation falls into the equation.

If you really want to see government at its worst, look at the presidential dollar coin fiasco....

Here is the bullet point:

KESTENBAUM: Right. And here's the second thing that explains why dollar coins are piling up. Adam, I know this one is going to drive the economist in you crazy. Here. Section 102 of the bill, sub-subsection - whatever that is, you know, with the two little I's - this is what I call the Sacagawea clause.

DAVIDSON: All right, let me read it. Circulation quantity - beginning January 1, 2007 - blah, blah, blah - the secretary annually shall mint and issue such Sacagawea-design $1 coins for circulation in quantities of no less than one-third of the total $1 coins minted and issued under this subsection.

So what this tells us is independent of demand, every time Congress mints a certain number of presidential coins, they also have to mint a bunch of Sacagawea coins.

KESTENBAUM: Yes, that's right. Actually, the number's been modified since then. Right now, it is one Sacagawea coin for every four presidential dollar coins.

DAVIDSON: So if they're minting 4 million Abe Lincoln coins, then they also got to fire up the Sacagawea mint and mint a million Sacagaweas?
Not only were they over-producing millions of presidential dollar coins... for every 4 they made, they would--by law--have to make on Sacagawea dollar coin.

I've been called a liberal (which I love) but at my heart, I'm an institutionalist if I'm anything. Stuff like this just makes the whole enterprise of government look ridiculous.

 

[Picaro]

I bought my electric bike with pennies I saved. Now I usually just tell the clerks to keep them, I don't want them.

 

[rampart]

Not sure about how devaluation falls into the equation.

If you really want to see government at its worst, look at the presidential dollar coin fiasco....

Here is the bullet point:

KESTENBAUM: Right. And here's the second thing that explains why dollar coins are piling up. Adam, I know this one is going to drive the economist in you crazy. Here. Section 102 of the bill, sub-subsection - whatever that is, you know, with the two little I's - this is what I call the Sacagawea clause.

DAVIDSON: All right, let me read it. Circulation quantity - beginning January 1, 2007 - blah, blah, blah - the secretary annually shall mint and issue such Sacagawea-design $1 coins for circulation in quantities of no less than one-third of the total $1 coins minted and issued under this subsection.

So what this tells us is independent of demand, every time Congress mints a certain number of presidential coins, they also have to mint a bunch of Sacagawea coins.

KESTENBAUM: Yes, that's right. Actually, the number's been modified since then. Right now, it is one Sacagawea coin for every four presidential dollar coins.

DAVIDSON: So if they're minting 4 million Abe Lincoln coins, then they also got to fire up the Sacagawea mint and mint a million Sacagaweas?
Not only were they over-producing millions of presidential dollar coins... for every 4 they made, they would--by law--have to make on Sacagawea dollar coin.

I've been called a liberal (which I love) but at my heart, I'm an institutionalist if I'm anything. Stuff like this just makes the whole enterprise of government look ridiculous.

does it really matter who's picture is on the thing? a quarter with sally ride fits the same coin slot as one with george washington?

 

[eagle7-31]

America Must Free Itself from the Tyranny of the Penny

Few things symbolize our national dysfunction as much as this accursed coin, which we mint by the millions because it’s too worthless to spend.

www.nytimes.com

Interesting article about the Penny and how it highlights our dysfunction as a nation. I've often said that we're not "adult" enough to admit when things aren't working or when things do not work as well as they should (in my case, often remarking about our 237 y/o business model and thinking it doesn't need regular updating to remain relevant). This article is along those same lines.

You feel the same way about nickels, dimes and quarters or 50 cent pieces?

 

[Silent Warrior]

But without the penny, how could you get change when you purchase one gallon of gas?

 

[candycorn]

You feel the same way about nickels, dimes and quarters or 50 cent pieces?

no...

 

[whitehall]

It is legal tender and we are charged by the penny for certain items. What's the problem again?

 

[Rogue AI]

The liberal war against single moms, minorities, and the poor continues. All in the name of convenience for the ivory tower twats. How sad.

 

[Silent Warrior]

It is legal tender and we are charged by the penny for certain items. What's the problem again?

I think the problem is it costs more than a penny to make a penny so producing them makes no fiscal sense.