# Discontinue the Penny? **URL:** \ **Category:** Cecil's Columns/Staff Reports\ **Created:** [September 19, 2014, 2:06pm UTC](https://boards.straightdope.com/t/discontinue-the-penny/698962 "2014-09-19T14:06:49Z")\ **Posts on this page:** 20\ **Page:** 2
**Author:** ![Irishman](https://avatars.discourse-cdn.com/v4/letter/i/b487fb/32.png) [@Irishman](https://boards.straightdope.com/u/Irishman)\ **Post date:** [September 21, 2014, 7:59am UTC](https://boards.straightdope.com/t/discontinue-the-penny/698962/21 "2014-09-21T07:59:17Z")
> [@Santa\_Cruz\_n](#): > > 'Tis to laugh. > If it’s trivial, how come the oil industry tacks on that “.9” at the end of the price of each gallon of gas? Ever notice that we hardly, if ever, think about it and yet it amounts to a huge additonal cost to the comsumer and a huge profit to those who already make more money than the rest of us put together? We never think about it for two reasons: first, every company does it, so every comparison is on even terms. If I want to compare gas price rates, I can look at two billboards and compare $3.45[sup]9[/sup] or $3.52[sup]9[/sup]. If that 9 is always there, then it doesn’t really matter that what I’m comparing is really more like $3.46 to $3.53 than it is $3.45 to $3.52. So it’s a wash. Second point, we see the final actual total on our bill. So it doesn’t matter that the stated per gallon price is masked by the .009, the total result is what we see. So again, it doesn’t matter. ---
**Author:** ![svd678](https://avatars.discourse-cdn.com/v4/letter/s/53a042/32.png) [@svd678](https://boards.straightdope.com/u/svd678)\ **Post date:** [September 21, 2014, 2:55pm UTC](https://boards.straightdope.com/t/discontinue-the-penny/698962/22 "2014-09-21T14:55:48Z")
They don’t tack on .9; they take off .1 because people react to 2.99 as if it were more like 2. that 3. ---
**Author:** ![sbunny8](https://avatars.discourse-cdn.com/v4/letter/s/c77e96/32.png) [@sbunny8](https://boards.straightdope.com/u/sbunny8)\ **Post date:** [September 22, 2014, 3:00pm UTC](https://boards.straightdope.com/t/discontinue-the-penny/698962/23 "2014-09-22T15:00:18Z")
FWIW, I was in Mexico last winter and every place I went (except one) had prices in whole number of pesos. Most restaurants, for example, on the menu it would say the price is 40 pesos and then when they bring you the bill, it says 40 pesos. Tax is included in the menu price. A peso is about .08 USD. The one exception was the supermarket, where prices on each item were given in pesos and hundredths of a peso. But when you got to the counter, they added up all the prices and then rounded it off. So if the total came to 87.79 MEX, they would smile and ask you for 88 pesos. I saw half peso coins in circulation but they were not common. I found a .20 peso coin (roughly .02 USD) lying in the dirt and nobody wanted it. In my locksmith shop, we don’t bother with pennies. Nearly everything in the store is priced at a whole number of dollars, with a few smaller items which cost .50 or .25 USD. There’s no sales tax in Oregon. On rare occasions, I might have a customer who buys $22.50 worth of merchandise and then presents a 10% off coupon. But frequently we can go an entire month without taking in a single nickel or dime, let alone pennies. I can see that the transition would be difficult. You go into Kroger to buy $17.53 worth of groceries (including sales tax) and then they say “okay, you owe us $17.55” and you’d get mad because they rounded it up to the nearest nickel. But if they rounded it down to the nearest dime and asked you for $17.50 you’d be happy, although the person in line behind you would be upset when their $22.18 got rounded up to $22.20. Eventually, people would get used to it. But I totally see that most stores wouldn’t want to be the first to make the switch. ---
**Author:** ![qazwart](https://avatars.discourse-cdn.com/v4/letter/q/5fc32e/32.png) [@qazwart](https://boards.straightdope.com/u/qazwart)\ **Post date:** [September 22, 2014, 3:52pm UTC](https://boards.straightdope.com/t/discontinue-the-penny/698962/24 "2014-09-22T15:52:00Z")
> [@rsat3acr](#): > > IIRC the .9 on a gallon of gas is a function of a gas tax, not a function of the retail price. Nope. The gas tax varies by state and there is a federal tax. However, the federal tax is 18.4 cents per gallon. That’s not the .9th of a cent we see at the pumps. Other states charge different rates, so the tax varies. Rarely does it end in .9 cents. Gas isn’t sold at the supermarket in gallon sized containers. Instead, I pump until my tank unit it’s full even if it means that i’m not buying whole gallon units. 1/10 of a penny pricing really doesn’t do too much. When gas cost about 15 cents per gallon, the government slapped on a 2% tax. If someone bought 5.28 gallons of gas, they would have been charged 792 cents which would have been rounded down to 79 cents. Add in that 2% tax, and the customer is now charged 81 cents. The gas stations could have charged the end user a 2% surcharge after fill up, but we’re talking gas station attendants – not exactly the group I associate with math prodigies. Instead of adding that tax on the end of the bill, the stations simply added that 2% to the price of a gallon. That worked out to 3/10 of a cent. When there were lots of stations, and they posted their prices to entice the public to choose one over the other, a station posting .24[sup]9[/sup] cents per gallon did way better than their competitor who posted .25 cents per gallon. ---
**Author:** ![california\_jobcase](https://avatars.discourse-cdn.com/v4/letter/c/9d8465/32.png) [@california\_jobcase](https://boards.straightdope.com/u/california_jobcase)\ **Post date:** [September 22, 2014, 6:43pm UTC](https://boards.straightdope.com/t/discontinue-the-penny/698962/25 "2014-09-22T18:43:51Z")
I’d love to buy some 1/4 cent gallon per gallon gasoline. ---
**Author:** ![Crazier\_Catlady](https://avatars.discourse-cdn.com/v4/letter/c/b9e5f3/32.png) [@Crazier\_Catlady](https://boards.straightdope.com/u/Crazier_Catlady)\ **Post date:** [September 23, 2014, 5:04am UTC](https://boards.straightdope.com/t/discontinue-the-penny/698962/26 "2014-09-23T05:04:36Z")
Here in the Netherlands most stores already round the total to the nearest 5 cents. The cash register does it automatically and nobody cares. In fact, there’s one supermarket chain that does still use cents (and two-cent coins) and most people think they’re a pain in the behind. And a eurocent is worth a bit more than a dollarcent. BTW, gas stations here also tack on the .9 cents, just like stores are more likely to price something .99 cents instead of 1 euro. It feels cheaper that way. ---
**Author:** ![Measure\_for\_Measure](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/measure_for_measure/32/557_2.png) [@Measure\_for\_Measure](https://boards.straightdope.com/u/Measure_for_Measure)\ **Post date:** [September 23, 2014, 5:38am UTC](https://boards.straightdope.com/t/discontinue-the-penny/698962/27 "2014-09-23T05:38:01Z")
> [@Crazier\_Catlady](#): > > And a eurocent is worth a bit more than a dollarcent. I was surprised that the Europeans even minted the dang Euro-penny. Good to know that reason at least prevails in most Netherlands stores. ---
**Author:** ![septimus](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/septimus/32/410_2.png) [@septimus](https://boards.straightdope.com/u/septimus)\ **Post date:** [September 23, 2014, 11:18am UTC](https://boards.straightdope.com/t/discontinue-the-penny/698962/28 "2014-09-23T11:18:26Z")
Thailand has one-baht coins worth $.03. It also has half-baht and quarter-baht coins which are never seen at all, except when given as change by big retailers like 7-Eleven. (And if the retailer is out of these tiny coins, they just round up _in their favor_.) > [@Aji\_de\_Gallina](#): > > No one is buying gold-plated, diamond-studded kevlar condoms with 0.25% increase. Are a lot of people with much larger increases buying those gold-plated, diamond-studded kevlar condoms? Googling gives [at least one hit for “gold-plated, diamond studded” condom](http://www.signature9.com/clips/the-100000-condom-isnt-a-luxury-item) :smack: … but where do I get one made of kevlar? ---
**Author:** ![Malthus](https://avatars.discourse-cdn.com/v4/letter/m/85f322/32.png) [@Malthus](https://boards.straightdope.com/u/Malthus)\ **Post date:** [September 23, 2014, 2:07pm UTC](https://boards.straightdope.com/t/discontinue-the-penny/698962/29 "2014-09-23T14:07:08Z")
I’d say the vast majority of Canadians are happy with the elimination of the penny & rounding. I know I am. The coins were worthless pocket-weight. ---
**Author:** ![qazwart](https://avatars.discourse-cdn.com/v4/letter/q/5fc32e/32.png) [@qazwart](https://boards.straightdope.com/u/qazwart)\ **Post date:** [September 23, 2014, 2:31pm UTC](https://boards.straightdope.com/t/discontinue-the-penny/698962/30 "2014-09-23T14:31:21Z")
In Israel, the smallest bank note is the 20 Shekel note worth a bit over $5 1/2. The rest are coins going from 10 shekels down to 1/10 of a Shekel (worth about 3 cents). They need a 10 Shekel note, and even a 5 Shekel note which would be worth about $1.50 dollars. Maybe I’m use to those _worthless dollars_, but I use paper dollars and don’t end up with too much change by the end of the day. In Israel, I usually end up with pockets bulging with about 200 shekels worth of coins at the end of the day ($50). When I pay for stuff, I have to remember to dig through my pockets for change. ---
**Author:** ![tim-n-va](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/tim-n-va/32/3001_2.png) [@tim-n-va](https://boards.straightdope.com/u/tim-n-va)\ **Post date:** [September 23, 2014, 3:49pm UTC](https://boards.straightdope.com/t/discontinue-the-penny/698962/31 "2014-09-23T15:49:32Z")
In Germany in the late 90s, the US base exchanges did not use pennies. They rounded down for 1 or 2 cents and up for 3 or 4. If someone came in with pennies they would take them (usually new transfers in). Prices would still ring up to the correct amount and the cashiers would adjust up or down. ---
**Author:** ![qazwart](https://avatars.discourse-cdn.com/v4/letter/q/5fc32e/32.png) [@qazwart](https://boards.straightdope.com/u/qazwart)\ **Post date:** [September 23, 2014, 4:13pm UTC](https://boards.straightdope.com/t/discontinue-the-penny/698962/32 "2014-09-23T16:13:57Z")
Pennies are not welcomed on the New Jersey Turnpike or the Garden State Parkway. The tolls on both are to the nickel. There are signs on the booths telling you they don’t take pennies. You pay a toll of $2.55 with two dollar bills, two quarters, and five pennies, they won’t accept it. Even if you’re in the Exact Change lane, they will insist you give them a five and they’ll make change over taking pennies. If you insist, saying that’s all you have, they’ll take the $2.50, but dump the five pennies on the ground. ---
**Author:** ![Balthisar](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/balthisar/32/2825_2.png) [@Balthisar](https://boards.straightdope.com/u/Balthisar)\ **Post date:** [September 24, 2014, 2:59pm UTC](https://boards.straightdope.com/t/discontinue-the-penny/698962/33 "2014-09-24T14:59:50Z")
> [@septimus](#): > > Thailand has one-baht coins worth $.03. It also has half-baht and quarter-baht coins which are never seen at all, except when given as change by big retailers like 7-Eleven. Anything under 10 baht I want to get ride of ASAP, although if I have 5 baht coins at least they’re good for the baht busses. Similarly in China, anything under 1 RMB isn’t worth the work it takes to carry around. Honestly China is worse. Due to rampant counterfeiting the largest denomination available to the public is only 100 RMB. Thats about $16. It sucks paying 18000 RMB rent with 100 RMB notes. ---
**Author:** ![qazwart](https://avatars.discourse-cdn.com/v4/letter/q/5fc32e/32.png) [@qazwart](https://boards.straightdope.com/u/qazwart)\ **Post date:** [September 24, 2014, 5:02pm UTC](https://boards.straightdope.com/t/discontinue-the-penny/698962/34 "2014-09-24T17:02:45Z")
> [@Balthisar](#): > > Anything under 10 baht I want to get ride of ASAP, although if I have 5 baht coins at least they’re good for the baht busses. > > Similarly in China, anything under 1 RMB isn’t worth the work it takes to carry around. Honestly China is worse. Due to rampant counterfeiting the largest denomination available to the public is only 100 RMB. Thats about $16. It sucks paying 18000 RMB rent with 100 RMB notes. In the U.S., all notes above the 100 were discontinued in 1969. The worry wasn’t counter fitting as much as illegal transactions. If I’m running a million dollar drug sale, ten packets of $1000 bills (100 bills in a packet) is quite doable. You could store it in a small bag. However, 100 packets of $100 bills would be a lot harder to carry. There’s even talk about doing away with the $100. Most people who need to pay large transactions would use checks or electronic payments. At one time, there were $10,000 and even $100,000 notes in the U.S. There weren’t used for the general public, but for transactions between banks. It’s estimated that 9 out of 10 $100 bills are located outside the U.S. – mainly for people who want to keep their money in a safer place than what their own economies can offer. It’s thought that Europeans have purposefully made the €200 and €500 notes in hopes that the euro will replace the dollar for those who save at the First National Bank of the Coffee Can Buried in My Backyard. ---
**Author:** ![TimeWinder](https://avatars.discourse-cdn.com/v4/letter/t/bcef8e/32.png) [@TimeWinder](https://boards.straightdope.com/u/TimeWinder)\ **Post date:** [September 24, 2014, 9:06pm UTC](https://boards.straightdope.com/t/discontinue-the-penny/698962/35 "2014-09-24T21:06:15Z")
> [@waddlingeagle](#): > > But other countries have successfully replaced their hyper-inflated currencies. Surely, a nation with the technological might of the United States ought to be able to manage it. Also a lot of people would feel ‘poorer.’ Apparently, much of the American public would rather have a million dollars of worthless Monopoly money than, say, ten thousand dollars that could actually buy something. If you’re calling the American currency “hyperinflated,” you really, _really_ don’t understand hyperinflation. Normal, run-of-the-mill inflation like the kind we have isn’t causing any problems that re-basing the currency would actually fix. ---
**Author:** ![Sparky812](https://avatars.discourse-cdn.com/v4/letter/s/eb9ed0/32.png) [@Sparky812](https://boards.straightdope.com/u/Sparky812)\ **Post date:** [September 25, 2014, 12:54pm UTC](https://boards.straightdope.com/t/discontinue-the-penny/698962/36 "2014-09-25T12:54:06Z")
> [@qazwart](#): > > Pennies are not welcomed on the New Jersey Turnpike or the Garden State Parkway. The tolls on both are to the nickel. There are signs on the booths telling you they don’t take pennies. You pay a toll of $2.55 with two dollar bills, two quarters, and five pennies, they won’t accept it. Even if you’re in the Exact Change lane, they will insist you give them a five and they’ll make change over taking pennies. > > If you insist, saying that’s all you have, they’ll take the $2.50, but dump the five pennies on the ground. That’s really, really stupid. It’s one thing to say their coin receptacles don’t accept pennies, etc. but to “dump pennies on the ground” is one of the reasons the US mint is forced to produce 13 billion pennies a year. I can see why they would prefer not to have to process and store pennies and try to discourage people from using them but they should accept them when it happens. ``` Even if they were to stop producing the penny,(which they've done here in Canada.), it will remain legal and recognized currency and should be accepted as payment. ``` ---
**Author:** ![waddlingeagle](https://avatars.discourse-cdn.com/v4/letter/w/4da419/32.png) [@waddlingeagle](https://boards.straightdope.com/u/waddlingeagle)\ **Post date:** [September 25, 2014, 1:12pm UTC](https://boards.straightdope.com/t/discontinue-the-penny/698962/37 "2014-09-25T13:12:06Z")
> [@TimeWinder](#): > > If you’re calling the American currency “hyperinflated,” you really, _really_ don’t understand hyperinflation. Normal, run-of-the-mill inflation like the kind we have isn’t causing any problems that re-basing the currency would actually fix. ‘Hyperinflated’ is not the right word, but I am having trouble thinking of a better one to describe a currency that is worth less than 1% of what it once was. The only difference is that the inflation occurred over a much longer period of time than a hyperinflation. Not causing any problems? How about worthless coinage? Look, coins cost a lot less to produce than bills because they last a lot longer. The dollar is getting to the point where it costs more to print one and keep it in circulation than it is worth. So we really have a choice: re-base the currency or coin dollars (with coins up to $100 in value) and call them the new penny. That is what it comes down to. ---
**Author:** ![Raygun99](https://avatars.discourse-cdn.com/v4/letter/r/6f9a4e/32.png) [@Raygun99](https://boards.straightdope.com/u/Raygun99)\ **Post date:** [September 25, 2014, 2:48pm UTC](https://boards.straightdope.com/t/discontinue-the-penny/698962/38 "2014-09-25T14:48:40Z")
That’s just regular old inflation. And some inflation is a good thing. It keeps people from hording their money (since if you do, it’s goiing to depreciate), and keeps that money circulating and growing the economy. Rebasing the economy and/or reminting an entirely new scheme of coins is going to be way more expensive than just eliminating the penny, particularly since cash is much less important as a physical object than it has ever been in history. ---
**Author:** ![Elendil\_s\_Heir](https://avatars.discourse-cdn.com/v4/letter/e/7cd45c/32.png) [@Elendil\_s\_Heir](https://boards.straightdope.com/u/Elendil_s_Heir)\ **Post date:** [September 27, 2014, 4:02am UTC](https://boards.straightdope.com/t/discontinue-the-penny/698962/39 "2014-09-27T04:02:12Z")
There was even a brief discussion on _The West Wing_ about discontinuing the production of pennies to save the Mint some money. One aide noted sagely, however, that the Speaker of the House was from Illinois, that Illinois’s favorite son Abraham Lincoln was on the penny (yes, I know he was born in Kentucky), and that pennies were thus going to keep getting minted no matter what. ---
**Author:** ![sudont](https://avatars.discourse-cdn.com/v4/letter/s/ce7236/32.png) [@sudont](https://boards.straightdope.com/u/sudont)\ **Post date:** [September 28, 2014, 7:18pm UTC](https://boards.straightdope.com/t/discontinue-the-penny/698962/40 "2014-09-28T19:18:55Z")
> [@Giles](#): > > Most cash purchases in the U.S. already involve rounding up or down, since most involve state or local sales taxes with odd fractional values. Say I go to a store, and buy something priced at $1.00 even, I generally can’t expect to pay with a dollar note: there will be a sales tax at some odd rate like 6.75% or 7.25%, and in each of those cases I will be paying $1.07. That’s an amount rounded to the nearest cent, after totalling the purchase and adding sales tax. > > If the US abolished the penny, the only difference would be that the purchase would be rounded to the nearest 5 cents, and not just to the nearest cent, if you’re paying with cash. (If you’re paying with a credit card or debit card, the transaction can remain rounded to the nearest cent as it is now.) I always assumed the payment of sales tax was the true purpose of pennies. [Previous page](https://boards.straightdope.com/t/discontinue-the-penny/698962.md?page=1) [Next page](https://boards.straightdope.com/t/discontinue-the-penny/698962.md?page=3)