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A new survey shows that 60% of Canadians support the abolishment of the penny, and for good reason. Getting rid of the penny would be a benefit to the economy. David Watt, the VP for RBC Capital Markets, explains the reason why in this Ottawa Citizen Article:
Production costs for the penny would be saved and, more importantly, it would put more money back into circulation.
Watt explained that many people hoard pennies, keeping them in jars at home or in a box in the basement.
If the government decided to give people cash in exchange for their old pennies, that money might be spent or put in a bank account. Either way, the money is back in the economy, he said.
Sometimes I don’t wait for change if all that I’m going to get back is a penny. If I see a penny on the ground I rarely bother to bend down to pick it up. 1 cent is often not worth the effort of waiting half a second or bending my knees.
There was a time that a penny was worth something. You could buy candy with a penny or leave a penny as a small but respectable tip. Now a penny is useless. Pop machines don’t accept them and there is literally nothing you can buy with a penny. All that a penny is good for is taking up room in your pocket and infantile drinking games. Thanks to inflation the penny has become a thing of annoyance rather than value.
So I am among the 60% who say that we should get rid of the penny.
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4 comments:
A penny was never a respectable tip. It's always been an insult, except possibly on the very smallest transactions a century ago.
I am all for it as long as the envirofreak stores who charge 5 cents per bag do not charge 5 cents HST.
B/S stupid plan. Here is how you liberate pennies from hiding. Twice a year for a few weeks have banks pay $1.10 per $1.00 of pennies redeemed to the banks by people. I guarantee a landslide of pennies come in at modest cost vs. punching out new ones to cover shortages that don't really exist. Advertise the program like CSB's and charge it to the mint. I guarantee it will work. (real conservative)
So what if a penny costs more than a cent to make. We should really ask ourselves about why this is so. Inflation is really an indirect tax, robbing people of their hard earned money. This is the real issue here!
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