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ItsAHabit's avatar

Are Pennies Doomed?

Asked by ItsAHabit (2297points) June 6th, 2010

Do you think that the U.S. mint will cease the production of pennies and, if so, when you expect this to occur.

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17 Answers

Ivan's avatar

Hopefully. Producing pennies actually results in a net loss in capital. It costs more than 1 cent to produce a penny. They’re becoming obsolete anyways. They’re just annoying.

RealEyesRealizeRealLies's avatar

damn at first I thought you said “penis’s”

Uh yes, I think pennies are doomed, and for all the reasons @Ivan states. Penis’s however, are here to stay, worth more than a cent, yet may still result in a net loss in capital depending upon how they are used.

Dr_C's avatar

@RealEyesRealizeRealLies any real use will result in some form of capital expenditure one way or another.

Also pennies aren’t doomed… they are cursed

breedmitch's avatar

Well you got me curious, so I just read the 2009 annual report from the US Mint. It seems that a penny cost 1.62 cents to make. A nickle costs 6 cents to make. But a dime only costs 5.65 cents to make and a quarter only costs 11.3 cents to make and the dollar coin is produced for about 30 cents. I think the government is still coming out ahead of the game and can afford the Lincoln nostalga.

arpinum's avatar

Well, we used to have a half penny. That was cancelled back when it was worth something like 8 cents in todays dollars. I’d say its long over due. When people leave pennies behind in a store in the “take a penny leave a penny” jar, it no longer functions as money.
Still, there is a pride issue in not wanted to admit our money has been so devalued. Because of this, I don’t see a policy eliminating it for another 15–20 years at least.

lilikoi's avatar

Perhaps. I remember in the 1990s when NZ stopped using their pennies.

jaytkay's avatar

There is a pro-penny lobby, Americans for Common Cents. Funded by zinc producers (US pennies are 97.5% zinc). http://www.pennies.org/

You can learn all about pennies here:
Penny Dreadful
They’re horrid and useless. Why do pennies persist?
by David Owen
http://www.newyorker.com/reporting/2008/03/31/080331fa_fact_owen

Seek's avatar

I’m kinda worried at the prospect of 7% sales tax immediately jumping to 10% sales tax. Maybe that’s just me.

Andreas's avatar

Australia has not had one- and two-cent coins for years. We even lost the one- and two-dollar notes, which are now coins. In time the US will probably follow. Also the cashless society seems to be closing in.

GracieT's avatar

It used to be that any college was a great thing to have as it would help with finding a job. Then a bachelor’s degee, and then a master’s… Won’t the same thing happen if we get rid of the penny? Would the nickle become the “new penny?” When does it stop? First we get rid of one, then the next, the next etc. When will “we” decide to end it?

RealEyesRealizeRealLies's avatar

@jaytkay “Why do pennies persist?”

Because they make great projectiles for launching at other drivers who won’t stay in their lanes. Don’t get road rage! Just toss some hard cash at em’.

jaytkay's avatar

@Andreas In Australia are only cash transactions rounded to the nearest 0.05? Do credit card/electronic/etc payments have 0.01 increments?

Luiveton's avatar

They pretty much are, because pennies are not considered beneficial nowadays, they are actually playing a minute role in making the economy less efficient, but this fact remains oblivious to some.

Andreas's avatar

@jaytkay When cash payments are made and the ending cents amount is not 5 or 0, then the following law applies: If the total due is, say, $10.01 or $10.02, then this becomes $10.00. If $10.03 or $10,04 is due, then it becomes $10.05.

If $10.06 or $10.07 is due, then it becomes $10.05. If $10.08 or $10.09 is due, then it becomes $10.10.

In the course of a year the consumer would probably have paid about the correct money had one- and two-cent coins be available, and rounding like this not been necessary.

When any amount is due, AND the payment is made by credit card, debit card or cheque
then the EXACT amount is charged in every case.

I hope this helps, and thanks for asking.

Andreas.

jaytkay's avatar

@Andreas Yes, exactly what I was looking for, thank you

LostInParadise's avatar

Before they switched to the euro, some European countries had currencies that had gone inflation for quite some time. The typical cost of something in Italy would be in thousands of lire. Did they have coins or notes for one lira?

ItsAHabit's avatar

The Euro has a one cent (1/100) coin.

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