Canada drops a penny

[lance gt]

http://news.ca.msn.com/canada/video.aspx?cp-documentid=cbcc2012-0405-1303-0043-223088631400

Canada stamped out its last penny today, making the trend to rounder numbers at the check out. No more 'Penny saved, is a penny earned." Thoughts will cost at least a nickle now.

 

[lovecraft68]

Yet another sign of inflation, now you have to put your five cents in.

 

[mynameisben]

Now if only the gas stations in the U.S. would drop the absurdity of posting their prices to the tenth of a cent.

 

[Zeb_Carter]

The penny is the most expense division of money for the mint's, Canadian and U.S., to make. The current cost to mint a penny is 2.41 cents. While the cost to mint a $1 bill is only 4.2 cents per bill.

 

[Ldy_Sea]

The penny is the most expense division of money for the mint's, Canadian and U.S., to make. The current cost to mint a penny is 2.41 cents. While the cost to mint a $1 bill is only 4.2 cents per bill.

And the cost for a $100 bill is 4.2 cents.

The problem with doing away with the penny is that taxes and interest don't always round out to a multiple of .05. So banks will round your interest down, Credit Cards, loans, sales tax, income tax,, and other taxews and fees we pay will round up. Not to mention the prie increases to the nearst 5. This all means the average person will end up with less cash in their pocket because of all the rounding in the business not consumers interest.

 

[voluptuary_manque]

Yeah, but nothing is ever figured in the consumers' interest. You know that.

 

[The_Young_Swell]

Besides dropping their penny, the Canadian Mint is in the midst of introducing its new high tech polymer money with the see-through security windows.

The $100 and $50 bills are already in circulation, while the $20 bills will be out in November.

No more "Will that be cash or plastic?" for Canadian shoppers.

It's soon going to be "Will that be polymer or polyvinyl chloride acetate?"

 

[lance gt]

Besides dropping their penny, the Canadian Mint is in the midst of introducing its new high tech polymer money with the see-through security windows.

The $100 and $50 bills are already in circulation, while the $20 bills will be out in November.

No more "Will that be cash or plastic?" for Canadian shoppers.

It's soon going to be "Will that be polymer or polyvinyl chloride acetate?"

Even the Loonie and Twoonie received security features. Can't mistake them for the foil wrapped chocolate anymore, lol

 

[JackLuis]

I see this is a Canadian topic, but In US dollars, I found a website of Coinnews.net, a Numismatic zene? They seem to keep track of inflation and have a calculator.

If in 1960 you bought a tank of gas for $10 dollars,~40 gals, because the Packard had a big tank, how much would it be in 2012 dollars?
$77.50!

I just filled my pickup and it cost me $75. Hows that for accuracy?

 

[Ldy_Sea]

I see this is a Canadian topic, but In US dollars, I found a website of Coinnews.net, a Numismatic zene? They seem to keep track of inflation and have a calculator.

If in 1960 you bought a tank of gas for $10 dollars,~40 gals, because the Packard had a big tank, how much would it be in 2012 dollars?
$77.50!

I just filled my pickup and it cost me $75. Hows that for accuracy?

I read a study that showed that when adjusted for inflation Gas was more expensive in the 50's than today, when figured as a percentage of disposable income. In other words Adults in the 50's spent a greater percentage of their discretionary spending on gas than we do today.

 

[Bramblethorn]

And the cost for a $100 bill is 4.2 cents.

The problem with doing away with the penny is that taxes and interest don't always round out to a multiple of .05. So banks will round your interest down, Credit Cards, loans, sales tax, income tax,, and other taxews and fees we pay will round up. Not to mention the prie increases to the nearst 5. This all means the average person will end up with less cash in their pocket because of all the rounding in the business not consumers interest.

Australia made this shift back around 1990, for the same reasons as Canada. Here's how it works:

Most financial calculations are NOT rounded to a multiple of 5c. My interest payments, tax bills, and electronic purchases are still figured to the nearest 1c. Rounding to 5c only applies when there's a cash transaction.

If I go to the supermarket and buy 8 apples at 99c each, the total showing on the register is $7.92. I can either pay by card - in which case the exact sum of $7.92 would come off my card. Or, I can pay in cash, in which case that $7.92 is rounded to $7.90, and when I hand over a ten-dollar note I get $2.10 change.

By law, when transactions are rounded, they have to be rounded to the nearest 5c: 1c or 2c rounds to 0, 3c-7c rounds to 5c, 8c-9c rounds to 10c. IIRC businesses were allowed to round down if they preferred, but not up, so the customer didn't end up out of pocket.

It really wasn't a big deal. One of these years we'll probably ditch the 5c coin as well.

 

[oggbashan]

I still miss the predecimals - the farthing, the halfpenny, the penny, the threepenny bit, the sixpence, the shilling, the florin and the half-crown. A few half-crowns in my pocket felt like riches. 240 pennies (that made a pound) were bulky and weighed more than my pockets could carry. As for 480 halfpennies? The last old pennies were minted in 1967. So many people bought them as keepsakes that mint uncirculated ones are still worthless. People bought £5 bags of them = 1,200 pennies, or £5 of halfpennies = 2,400. Some try to sell individual coins for large sums on eBay!

All went on or before 15 February 1971, being replaced by new pence - halfpenny, penny, five-pence, ten-pence and fifty-pence. The new pence halfpenny has gone now, and since then the five-pence, ten-pence and fifty-pence have shrunk in physical size.

The pound in my pocket has shrunk in size, in weight and in purchasing power.

 

[The_Young_Swell]

I still miss the predecimals - the farthing, the halfpenny, the penny, the threepenny bit, the sixpence, the shilling, the florin and the half-crown.

The old British currency was great. All kinds of odd coins with all kinds of slang names.

I know a "Bob" was a shilling, but what was the threepenny bit a "Joey?" (Don't worry, I plan to reread Orwell's "Keep the Aspidistra Flying" so I can wait until then if you don't remember.)

And it still seems to be a great aid to writers injecting historical atmosphere into a story with a simple purchase or discussion of prices.

 

[lance gt]

The old British currency was great. All kinds of odd coins with all kinds of slang names.

I know a "Bob" was a shilling, but what was the threepenny bit a "Joey?" (Don't worry, I plan to reread Orwell's "Keep the Aspidistra Flying" so I can wait until then if you don't remember.)

And it still seems to be a great aid to writers injecting historical atmosphere into a story with a simple purchase or discussion of prices.

I believe it's pronounced a Thrupny, along with Tupance for two pence, and a Hapny for a halfpence. At least in Scottish they're pronounced that way.

 

[PayDay]

Yet another sign of inflation, now you have to put your five cents in.

Funniest post of the day.

And the cost for a $100 bill is 4.2 cents.

The problem with doing away with the penny is that taxes and interest don't always round out to a multiple of .05. So banks will round your interest down, Credit Cards, loans, sales tax, income tax,, and other taxews and fees we pay will round up. Not to mention the prie increases to the nearst 5. This all means the average person will end up with less cash in their pocket because of all the rounding in the business not consumers interest.

Exactly. This has nothing to do with saving the consumer, or helping the consumer, anything. This is simply a currency shift to hide the rate of inflation and dire finacial circumstances.

Don't think so? Then why would they make five cents one cent instead of repairing the country so that one cent equals one cent to produce?

Money is no longer based on a physical standard, it has become a representation of a physical standard. Eliminating the use of the penny does not fix this, it simply allows bank and governments more transaction fees and BS finace practices.

Besides dropping their penny, the Canadian Mint is in the midst of introducing its new high tech polymer money with the see-through security windows
....
It's soon going to be "Will that be polymer or polyvinyl chloride acetate?"

LMAO @ spotted liver cancer from eating money.

Australia made this shift back around 1990, for the same reasons as Canada. Here's how it works:

Most financial calculations are NOT rounded to a multiple of 5c. My interest payments, tax bills, and electronic purchases are still figured to the nearest 1c. Rounding to 5c only applies when there's a cash transaction.

If I go to the supermarket and buy 8 apples at 99c each, the total showing on the register is $7.92. I can either pay by card - in which case the exact sum of $7.92 would come off my card. Or, I can pay in cash, in which case that $7.92 is rounded to $7.90, and when I hand over a ten-dollar note I get $2.10 change.

By law, when transactions are rounded, they have to be rounded to the nearest 5c: 1c or 2c rounds to 0, 3c-7c rounds to 5c, 8c-9c rounds to 10c. IIRC businesses were allowed to round down if they preferred, but not up, so the customer didn't end up out of pocket.

It really wasn't a big deal. One of these years we'll probably ditch the 5c coin as well.

That is a very long explaination for you agreeing with getting ripped off on a regular basis.

Banks already get rich off of percents of a penny, this is simply a representation of that, but on a grand scale. No one intentionally gives away money without a reason behind it.

It's simple math, if you do not understand:

1 =/= 0, 0.99999999999999999999999999999 =/= 1

 

[Bramblethorn]

That is a very long explaination for you agreeing with getting ripped off on a regular basis.

Ditching the 1c coin has no effect on non-cash transactions; they work exactly the same as they used to. When it comes to cash transactions, prices are rounded in my favour just as often as they're rounded against me, so the net effect is zero.

So nobody's getting ripped off. At least, not that way; banks and vendors have plenty of other ways to gouge customers, but I don't know of any that are substantially helped by the lack of a 1c coin.

Banks already get rich off of percents of a penny

I loved Office Space too (Superman 3 not so much) but don't get carried away there.

First off, AFAIK most banks actually round interest calculations to the nearest cent - even if that means rounding up - which makes rounding profit-neutral. (But I could be wrong on that, maybe there are a whole bunch of banks that consistently round down. I'm happy to look at hard cites.)

Second, it doesn't stand up if you work the numbers. On average, rounding down instead of rounding off will make you half a cent every time that rounding occurs. On an account where interest is credited monthly, that works out at 6c a year. Compared to what the bank is making on the same account in fees and the rest of the interest, that's chickenfeed.

 

[TE999]

IMO bills and coins are a PITA to keep track of and use. Plastic is faster and more convenient. When the plastic bill comes due, transfer the money from your bank account on line. Virtually anything takes plastic anymore including soda machines, automatic car washes and (if you can find one) pay phones.

Pay and government checks are fast disappearing in favor of direct deposit. On-line payments are making paper checks obsolete as well.

Since we went off the gold (and silver) standard, bills and coins have no intrinsic value anyway. It's what they're capable of purchasing that makes them valuable. One plastic card has the same purchasing power as pockets full of money and it's easier to carry.

Short version: Bills and coins are rapidly becoming obsolete.