The US really might stop producing pennies

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Will Truman

Will Truman is the Editor-in-Chief of Ordinary Times. He is also on Twitter.

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25 Responses

  1. Avatar Road Scholar
    Ignored
    says:

    Please.Report

  2. Avatar Murali
    Ignored
    says:

    So, no more 1.99 shops?Report

  3. Avatar aaron david
    Ignored
    says:

    So, when we get taxed on a purchase, will the gov’t round down, saving us the few cents? Or will it round up, gaining the few cents for itself?Report

  4. Avatar LeeEsq
    Ignored
    says:

    As long as we get to keep our shillings and guineas.Report

  5. Avatar Damon
    Ignored
    says:

    This wouldn’t be a problem if the us hadn’t devalued it’s currency through inflation and “structural easing”.Report

  6. Avatar Morat20
    Ignored
    says:

    I always hate the “it costs more than a penny to make a penny” thing. It’s dumb and immaterial. It’s fiat currency. It’s value doesn’t like in the value of it’s component materials.

    Sorry, just my kvetching.Report

    • Avatar James K in reply to Morat20
      Ignored
      says:

      @morat20

      One source of government revenue is seigniorage – the creation of money as a revenue source. This is nowhere near as large a revenue source as tax, but it is a revenue source nonetheless.

      That pennies have a negative seigniorage value means that the government has to make up that revenue elsewhere, and it really is absurd to make something that is worth less than the materials that make it up.Report

      • Avatar Damon in reply to James K
        Ignored
        says:

        The gov’t CAN afford it.Report

      • Avatar Morat20 in reply to James K
        Ignored
        says:

        If a penny was spent once then exhausted, I’d agree.

        Which might make it actually apply to the penny, since it ends up right back in banks rather than circulating.

        But take the almighty dollar. It might get spent a hundred times. If it cost a dollar fifty to make, it still got circulated like a hundred dollars — even if it cost more to make than it’s worth.Report

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