Canada loses the penny... but wait a minute!!!

Yes thats right, we're getting rid of the penny... basically that means all prices will be rounded up...

Yay for us...

But heres an interesting bit of useless info... perhaps someone can explain it to me because i just don't get it.

The government claims it costs 130 million dollars a year to keep pennies in circuliation!!



WTF?!?!

How in the hell does it cost ANYTHING to keep pennies in circulation? They're out there... circulating!!

Can anyone explain this idea to me, cause im lost here...

How does it cost money... to keep money circulating?

As far as i can see it costs nothing... that number is just more money the government lines its pockets with in my opinion...

That is probably the cost to mint new ones to replace the old, worn out pennies. As little as a penny is worth, it probably costs many times its face value to make them.

Gotta love inflation huh?

reply to post by FortAnthem


Actually every penny costs 1.6 cents to make... but that is not the point... How many of us have thousands if not millions of pennies in a little jar at home...

They don't need to make MORE of them...

And i didn't say it costs 130 million to make each year.... the claim is it costs that much "to keep pennies in circulation".....

I want to know how it costs ANYTHING to keep pennies in circulation...

They're made of Steel.... steel doesn't ware out...

Originally posted by Akragon
reply to post by FortAnthem

 

Actually every penny costs 1.6 cents to make... but that is not the point... How many of us have thousands if not millions of pennies in a little jar at home...

They don't need to make MORE of them...

And i didn't say it costs 130 million to make each year.... the claim is it costs that much "to keep pennies in circulation".....

I want to know how it costs ANYTHING to keep pennies in circulation...

They're made of Steel.... steel doesn't ware out...

edit on 30-3-2012 by Akragon because: (no reason given)

I must admit like you I didn't get the notion of doing away with pennies. All I could think about was how will the cashiers make change without pennies? I also agree with you on the penny circulation matter, they already have tens of millions of pennies in circulation why do they need to keep making more? It's simpler to keep using what's in circulation and replacing those pennies that are terribly defaced.

Originally posted by Akragon

 

Actually every penny costs 1.6 cents to make... but that is not the point... How many of us have thousands if not millions of pennies in a little jar at home...

They don't need to make MORE of them...

And i didn't say it costs 130 million to make each year.... the claim is it costs that much "to keep pennies in circulation".....

I want to know how it costs ANYTHING to keep pennies in circulation...

They're made of Steel.... steel doesn't ware out...

I once heard that was the problem. Too many people were hoarding their pennies, and the banks and businesses needed them.
I remember once years ago, they asked people to cash them in, before a shortage was created.

Originally posted by snowspirit

I once heard that was the problem. Too many people were hoarding their pennies, and the banks and businesses needed them.
I remember once years ago, they asked people to cash them in, before a shortage was created.

If the government takes them out of circulation, they will become a collector's item and the value will go up.

Maybe hoarding all those pennies isn't such a bad idea after all.

I think the cost of circulation has a lot to do with paying people to handle and count them.
Plus there's the cost of keeping them. They take up space but are useless.

reply to post by Fishticon84


Most establishments have machines to count small change...

Alright so lets say for whatever reason it costs 130 million a year to keep them in circulation...(Bull***T!)

Since they will be saving 130 million dollars a year in this little scamboozal... where does that money go now?

It definatly won't be used to enhance the lives of the average Canadian...

So whos getting rich here?

Originally posted by Akragon
reply to post by FortAnthem

 

Actually every penny costs 1.6 cents to make... but that is not the point... How many of us have thousands if not millions of pennies in a little jar at home...

They don't need to make MORE of them...

And i didn't say it costs 130 million to make each year.... the claim is it costs that much "to keep pennies in circulation".....

I want to know how it costs ANYTHING to keep pennies in circulation...

They're made of Steel.... steel doesn't ware out...

edit on 30-3-2012 by Akragon because: (no reason given)

They keep having to mint more. As you say...you...and all those other penny squirrels have them stashed away in jars, and boxes in the closet. All you widdle penny squirrels hoarding them away....shame on you.....

Des

Great post!

Just try to cash in $100 worth of counted and rolled pennies in any bank.
Then come back and say they want pennies.
Peace!

I believe it. It costs money to count them, whetehr you have a fancy machine or not. You still have to make room for them, tote them, etc. Yet they aren't worth the energy it takes to pick them up.

Most retail establishments I frequent have a "penny cooperative," a jar of pennies on the counter. If you need a few to round out a transaction, pull them out. If you get some in a transaction, throw them in. I;ve even seen nickels and dimes in those jars.

A penny is nort worth enough to get worked up over.

Try looking at it from this angle, a dollar is one hundred pennies! Food for thought? How will this affect higher currency? If you have two cents coming back in change, do you lose that? Multiply by about seven billion people, two pennies don't seem like much until some possibilities are explored!

When my Daughter was born, I started saving pennies to give her for her 16th. Birthday. I got the canvass coin bags from Wells Fargo bank back then. By the time it was that special birthday...I had over 1,000 lbs of pennies in canvass sacks. It took her, and a few of her friends about a month to wrap them all in paper penny rolls. They also had to separate all the older pennies from the newer ones. There are approx. 181 pennies to a lb.

She had fun and a good bit of money to add to her bank account.....that's my penny story....

Des

reply to post by Destinyone


Thats awesome!!

Personally i think pennies are only good for one thing...

Flicking at your buddies while drinking...

I can snipe a guy right between the eyes from across the room... Even behind my back...

Almost as deadly as the legendary beer cap ninja star...

Oh the wars i've had...

Originally posted by ionsoul
Great post!

Just try to cash in $100 worth of counted and rolled pennies in any bank.
Then come back and say they want pennies.
Peace!

You are so right. The banks act as if those little buggers are poisonous even if they are rolled. I can see them getting irritated if I brought $100 worth of loose pennies but rolled pennies? My bank actually try to discourage their patrons from bringing in too many rolled pennies at one time.I remember in the late 70s there was signs in bank and store windows asking for people to spend their pennies there because they needed pennies, now they turn their noses up on the pennies.

Originally posted by Destinyone
When my Daughter was born, I started saving pennies to give her for her 16th. Birthday. I got the canvass coin bags from Wells Fargo bank back then. By the time it was that special birthday...I had over 1,000 lbs of pennies in canvass sacks. It took her, and a few of her friends about a month to wrap them all in paper penny rolls. They also had to separate all the older pennies from the newer ones. There are approx. 181 pennies to a lb.

She had fun and a good bit of money to add to her bank account.....that's my penny story....

Des

This was common practice, I know we did this for my nieces and nephew. Each month of saving the coins we would deposit them into the bank, did this for 18 years. So those pennies do add up and from my standpoint is worth the energy.

reply to post by Akragon


Because it costs 1.6 pennies to make a pennie, there's your extra cost.

It's silly to have them anyway, considering their purchasing power is 1/20 of what it used to be.

And under the plan, it will be rounded up or down, to the nearest 10th.

So something is 8.96$ after taxes, it will be rounded down. Rounded up if it was 8.94$.

reply to post by tothetenthpower


Bet you a penny everything will be rounded UP!!