President Donald Trump says he has directed the Treasury Department to stop minting new pennies, citing the rising cost of producing the one-cent coin.
Other nations that did away with smaller denominations simply round to the nearest denomination of the smallest unit they have available (e.g. $0.05), so $0.96 would come out to $0.95. When using card, prices stay the same, since digital money is easily divisible into smaller amounts without needing to worry about issuance.
There’s also the collective cost argument, which essentially means that since this cost to produce currency is a direct inflationary impact on the money we all hold, and is an expense by the government, which represents the populace, then if a penny costs $0.03 to make, if it takes you more than, say, 10 seconds to get pennies out to pay with them, your hourly wage is actually higher than the time you wasted just fiddling around with that penny.
Can we make a penny for less?
Probably, but what’s the point even keeping the penny around if it’s fundamentally useless to most transactions? Nobody can buy any individual item with a penny anymore, nobody pays for any items with a combination of just pennies since they’re still too tiny to easily amount to a value that’s worth your time to count (e.g. counting 25 pennies to buy a lollipop is extraordinarily tedious compared to just pulling out a single quarter, or two dimes and a nickle), and their primary purpose at this point is just to account for businesses pricing their goods at one penny under the nearest dollar amount to trick your brain into thinking it’s cheaper. It’s a fundamentally hostile currency to store, use, and receive change in.
Other nations that did away with smaller denominations simply round to the nearest denomination of the smallest unit they have available (e.g. $0.05), so $0.96 would come out to $0.95. When using card, prices stay the same, since digital money is easily divisible into smaller amounts without needing to worry about issuance.
There’s also the collective cost argument, which essentially means that since this cost to produce currency is a direct inflationary impact on the money we all hold, and is an expense by the government, which represents the populace, then if a penny costs $0.03 to make, if it takes you more than, say, 10 seconds to get pennies out to pay with them, your hourly wage is actually higher than the time you wasted just fiddling around with that penny.
Probably, but what’s the point even keeping the penny around if it’s fundamentally useless to most transactions? Nobody can buy any individual item with a penny anymore, nobody pays for any items with a combination of just pennies since they’re still too tiny to easily amount to a value that’s worth your time to count (e.g. counting 25 pennies to buy a lollipop is extraordinarily tedious compared to just pulling out a single quarter, or two dimes and a nickle), and their primary purpose at this point is just to account for businesses pricing their goods at one penny under the nearest dollar amount to trick your brain into thinking it’s cheaper. It’s a fundamentally hostile currency to store, use, and receive change in.