Eliminating the penny

[disneysteve]

I actually found something about which I agree with Elon Musk. Imagine that. He wants to eliminate the penny to reduce government spending. It now costs more than 3 cents to produce each penny not counting distribution, handling, and storage costs. 4.5 billion pennies were minted in 2023 at a cost of $179 million. There have been proposals to end production for at least 20+ years but it's never gone anywhere. Maybe Musk will be the guy to actually make it happen.

Of course that cost only amounts to 0.0029% of the overall budget but saving is saving.

[EasyMoney00]

How would that work for pricing? Everything would have to end in a 0 or a 5. Or, would everything be rounded down or up?

[disneysteve]

How would that work for pricing? Everything would have to end in a 0 or a 5. Or, would everything be rounded down or up?

Since the vast majority of all transactions are handled electronically with credit or debit or online payments, they wouldn't need to change anything except for cash transactions. And many places already round those off to avoid having to give out the pennies. I've often had a purchase come to $10.82 and paid cash only to be charged $10.80 and they just omitted the 2 cents.

[ua_guy]

I so rarely pay in cash that I find all change to be a nuisance, to be honest. Every couple of years we empty our change jar, which is a pain. And it doesn't amount to much. I definitely wouldn't miss the penny, but I don't know about, nor do I have any strong opinions about any logistical challenges.

[Jluke]

They need to normalize $50 bills and offer them in ATM’s

[disneysteve]

They need to normalize $50 bills and offer them in ATM’s

I agree. Our ATM does give out $100 bills. Of course lots of merchants won’t accept anything larger than a $20 which is annoying. I also think it’s time to reintroduce something larger than a $100. When you’re making a substantial purchase like a car or furniture it would be nice to not have to walk in with a big stack of hundred dollar bills.

[Jluke]

Merchants look at me like I’m a criminal when I hand over a $50. Let alone several of them.

they mark it or some have cash readers or whatever to tell if counterfeit.

I say don’t charge so much and I won’t need big bills

[kork13]

Yeah, I'd love to see the penny disappear from circulation. I forget where, but a few countries I've visited have done away with their smallest (1 cent equivalent) coin. They just round to the nearest '5' if in cash, or charge the exact amount with electronic payment methods.

[ua_guy]

When you're making a substantial purchase like a car or furniture it would be nice to not have to walk in with a bif stack of hundred dollar bills.

Wait, what? lol. There are so many safer ways to pay for things.

[disneysteve]

they mark it or some have cash readers or whatever to tell if counterfeit.

Some places even do that with $20 bills.

[disneysteve]

Wait, what? lol. There are so many safer ways to pay for things.

Sure but when the furniture store gives a 10% discount for cash and you’re spending a few thousand, cash is the way to go. Or if you’re buying a car from a private seller, they want cash. I also spend a lot of cash at estate sales and auctions.

[mumof2]

Since the vast majority of all transactions are handled electronically with credit or debit or online payments, they wouldn't need to change anything except for cash transactions. And many places already round those off to avoid having to give out the pennies. I've often had a purchase come to $10.82 and paid cash only to be charged $10.80 and they just omitted the 2 cents.

in australia we omitted 1 & 2 cent pieces in 1992...some places still advertise like 82c or 99c, so basically you just round up to the nearest 5c..so this would be 80c $1....they are still legal tender so you can still use them

[mumof2]

They need to normalize $50 bills and offer them in ATM’s

wait you don't get them over there we get all 3 in our $20, $50, $100...interesting

[disneysteve]

wait you don't get them over there we get all 3 in our $20, $50, $100...interesting

I don’t use the ATM a lot but the one I go to gives $10, $20, and $100 bills. I’m more likely to go inside when I need cash because that’s the only way to get $1 and $5 bills.

[Fishindude77]

I don't use an ATM but it is pretty frustrating that so many places don't want to take $50 or $100 bills.
Two meals at Burger King burns up most of a $50 bill ..... why won't they accept one?