Over the weekend, the Canadian government announced that they would cease production of the penny, which currently costs them 1.5 cents to produce. That means they would save $11 million a year on its production. Apparently, they are following the lead of other countries, as New Zealand, Australia, the Netherlands, Norway, Finland, and Sweden have all said goodbye to the penny already.
As pennies are phased out of production, businesses are expected to round to the nearest 5 cents in order to make the penny completely obsolete. Critics say that businesses will use this to price gouge consumers by always rounding up.
As we watch our neighbors to the north transition to a pennyless society, I wonder how long it will take for the U.S. to consider phasing ours out. I don’t know about you, but pennies are nothing but a nuisance, and I’d be happy to pay an extra 4 cents per transaction to get rid of them. Who doesn’t have a jar at home? I did, and I recently cashed it in. After years of saving, I turned it in for a whopping $14.00. It wasn’t worth the time it took me to roll them up. Or the dirt on my hands afterwards.
The truth is, I rarely even carry cash, opting to pay for most things with my bank card. It seems like, in this day and age of online transactions, eliminating the penny would go pretty much unseen. What do you guys think?
Interested in world currency? We have plenty of books on the topic!