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What will happen if the penny is gone

What will happen if we eliminate the penny

If we eliminate the American penny, the nickel will then be the penny. The dime will be the nickel. And the… dime… will be the QUARTER. And then we will have no quarters.

Oh wait. The dollar coin will be the quarter. But the dollar bill will be the dollar. And then i’ll get a bunch of dollar coins cuz they will be worth 25 cents.

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7 comments on "What will happen if the penny is gone"

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Sparx
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I forget how much it was, and I feel like I may have posted it here in a comment before – but the amount of money that would be saved by eliminating the penny is like ELEVENTY-BAJILLION dollars. Looking at it from that angle it’s hard to disagree with it. No one wants to have to round money to the nearest $0.05 increment though. Even though I know the rounding will average out, I still have a “I don’t want to lose 4 cents!” running through my mind. I think the penny is here to stay. We can’t just start… Read more »
Sparx
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Production. Wikipedia says it costs 1.7c to make a penny. Also: “If it takes only two seconds extra for each transaction that uses a penny, the cost of time wasted in the U.S. is about $3.65 per person annually,[5″> about $1 billion for all America.[6″> Using a different calculation, economist Robert Whaples estimates a $300 million annual loss.” http://en.wikipedia.org/wiki/Penny_debate_in_the_United_States

DCTheman
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have you thought about taxes? I would think that taxes may go up….. because a nickel can’t pay anything ending with 1-4 or 6-9….. So lets take a county tax rate of 8% and you bought something for $15, now considering pennies are removed we only have nickels…. being taxed at 8% on a $14 purchase means $1.12 will be added to the purchase making it cost $15.12 in results the nickel can’t pay $15.12, so to make this work the government would decided to lower taxes to either 5% or 10% to make the nickel work which will most… Read more »
Sparx
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Taxes would be rounded to the nearest $0.05. I saw something about this once, and the main negative was that people would feel like they were being cheated out of money when it rounded up – but it really would average out.

Sparx
Guest

I just found out that there are several countries that have gotten rid of their lowest denomination coins. New Zealand eliminated 1 and 2 cent coins in 1990, and then eliminated their 5 cent coins in 2006. Prices are rounded to the nearest 10 cents using “Swedish rounding“.

Sparx
Guest

The “Swedish rounding” for 10 cent increments is pretty straightforward (1-4c round down, 6-9c round up, and 5 is decided by the retailer), but for the 5 cent rounding it’s a bit more odd: 1c, 2c, 6c, 7c round down 3c, 4c, 8c, 9c round up

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