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Should the US abolish the penny?


Punishment_Fatal

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Get rid of the penny, rework our current system so that we have a 10 cent piece a 25 cent piece and a 50 cent piece. Then we stop losing money on nickels and pennys

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How about not abolishing it, but instead making it fair. See every president gets one fiat currency, however Lincoln gets both a coin AND a dollar.

 

Let's say we make pennies out of plastic and have Obama or Trump on them.

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I think they should just round everything to 5 or 10.

 

Uh, no.

 

Do some simple math, and you'll see why a penny makes a ton of difference in the long run. 

(Source: gas pumps and Office Space)

 

We can't make everyone stop using pennies either, even if we're losing money on both that and the nickle  

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Yeah it would be a hard fight when you get to big companies (there's a reason they care enough to put and 9/10 on the price of gas, as in +9/10 of a penny)

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Posted · Hidden by puddingkip, October 12, 2015 - No reason given
Hidden by puddingkip, October 12, 2015 - No reason given

I see the birthplace for a flame war in the US vs. Canada comments above.

 

flame war!!! flame war!!! flame war!!!!

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Posted · Hidden by puddingkip, October 12, 2015 - No reason given
Hidden by puddingkip, October 12, 2015 - No reason given

How about not abolishing it, but instead making it fair. See every president gets one fiat currency, however Lincoln gets both a coin AND a dollar.

 

Let's say we make pennies out of plastic and have Obama or Trump on them.

No. Trump can suck my left nut and eat shit.
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Uh, no.

 

Do some simple math, and you'll see why a penny makes a ton of difference in the long run. 

(Source: gas pumps and Office Space)

 

We can't make everyone stop using pennies either, even if we're losing money on both that and the nickle  

 

The general notion is to round, not always up but down as well. $0.01 and $0.02 would be rounded down to $0.00 and $0.03 and $0.04 would be rounded up to $0.05. In the long run everything actually evens out based on averages. You can go ahead and try this out on a large sample size, the resulting averages are roughly the same.

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Yes. Our stores haven't been giving out 1 and 2 cents for years now and I'm happy for it. Items still cost 12.99 but if you buy a total of xx.96 or .97 it gets rounded down to .95 and .98 or .99 gets rounded to xx+1.00.

 

This only applies to cash payments though. And whenever I visit countries like Belgium and Germany I get annoyed by all the stupid 1 and 2 cents I get. They are still valid payment in our stores but it just takes so much fucking time to use 1 and 2 cents. I'm glad we got rid of them

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Posted · Hidden by puddingkip, October 12, 2015 - No reason given
Hidden by puddingkip, October 12, 2015 - No reason given

Aussie here we dropped the 1cents ages ago, we have nice different coloured plastic bills too :D

 

Not sure you want people to being up what America has done to the world in the recent years also if Canada stopped drilling their oil reverse US wouldnt exactly be well off...Especially since peak oil is expected to be reached soon...

i'm not american but it's not like my country doesn't have a brutal imperialist past either; the difference is that i'm not bragging about how much better my nation is over like the least significant monetary change ever. also why did my post get removed

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The general notion is to round, not always up but down as well. $0.01 and $0.02 would be rounded down to $0.00 and $0.03 and $0.04 would be rounded up to $0.05. In the long run everything actually evens out based on averages. You can go ahead and try this out on a large sample size, the resulting averages are roughly the same.

How do companies decide who to round up/down on?

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Yes. Our stores haven't been giving out 1 and 2 cents for years now and I'm happy for it. Items still cost 12.99 but if you buy a total of xx.96 or .97 it gets rounded down to .95 and .98 or .99 gets rounded to xx+1.00.

 

This only applies to cash payments though. And whenever I visit countries like Belgium and Germany I get annoyed by all the stupid 1 and 2 cents I get. They are still valid payment in our stores but it just takes so much fucking time to use 1 and 2 cents. I'm glad we got rid of them

 

Austria (where I study) sadly didn't catch up with this rounding thing as well. Nothing pisses me off nearly as much as these goddamn 1/2 cent coins.

 

Thing is in switzerland/liechtenstein the smallest coin is 5 Rappen (which is approximately 5 cent), and I already though we should abolish that. And these were around waaaaay before the euro, so the EU could have taken the goddamn hint. I'm not the only one who thinks this.

 

Just makes me think the EU should have never made the 1/2 cent coins to begin with.

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Yes, if they cost more money then they are worth to make then they're just pushing us further into debt.

 

OT; here in Europe (Maybe not all of Europe, but Ireland) the tax is included into the price on the wall. Meaning if something says it's 2 Euro, you hand them a 2 Euro coin and you're on your way.

 

So much better than in the US where you have to add the tax, and it means you have to carry a lot less coins.

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Pretty sure they have done the math, and the additional time cashiers spend on grabbing the correct number of pennies for change, is worth more money than the pennies lol

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How do companies decide who to round up/down on?

Not sure if this would apply to all countries but in Aussie (we got 1$, 2$, 20c, 5c, 50c, 10c coins) rounding up/down is basic maths?

 

0.06-0.07 = rounding down to 0.05

0.08-0.09 = rounding up to 0.10

 

This would only apply for transactions which you pay with cash on hand, for online/bank...etc you still pay via exact amounts tho.

 

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I don't think either of you understand

 

They round up/down on everyone based on what the cent digit is.

  

Not sure if this would apply to all countries but in Aussie (we got 1$, 2$, 20c, 5c, 50c, 10c coins) rounding up/down is basic maths?

 

0.06-0.07 = rounding down to 0.05

0.08-0.09 = rounding up to 0.10

 

This would only apply for transactions which you pay with cash on hand, for online/bank...etc you still pay via exact amounts tho.

 

If you pay with cash, and they round up, you pay more and they make more

If they round down, they lose money

 

A cent may not seem like much, but if it happens thousands of times it can become a huge profit or loss

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 If you pay with cash, and they round up, you pay more and they make more

If they round down, they lose money

 

A cent may not seem like much, but if it happens thousands of times it can become a huge profit or loss

 

That's the point when taken on a large scale the difference is negligible since the amount of money they profit will be balanced out by the amount taken in the negative so to companies it is a negligible difference the only ones suffering a loss is the American government who continuously mints out pennies and taking a loss since it costs more to make the coin than it is worth.

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  • 2 weeks later...

what if you pay 20$ in cash for a 19.99 item? this is why we need pennies.

 

Round to $20.00.

 

$.98 - $.99 = round up, $.96 - .$97 = round down.

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