I don't see the point in keeping the penny or any physical money, I don't think I've used real money for a few years now. Goods are either charged to my credit card or debit card and I like it that way, less weight on your wallet, it's faster, and it works everywhere, unless your dealing with something illegal and don't want to leave a paper trail, it's just a better way to do things.
Abolishing the one-unit-of-currency coin would be very difficult to accomplish. If the coins suddenly became worthless, people would probably just choose to throw them out. Considering the amount of coins out there, especially for such a common currency, tons of waste would be produced and disposal would be required. That would cost lots of money (and possibly affect the environment, depending on whether they're just thrown somewhere or properly disposed of. Regardless of that, though, people will still carelessly toss pennies out of their pockets and into streets or whatever (and now there's no incentive to pick them up! =P). With all the concern over environmental issues - not to mention the debt most countries have - it wouldn't make much sense.
Besides, how would it work for converting currencies? :/ Rounding up/down wouldn't be a matter of sales there - it would literally be about losing money or gaining money that isn't there. (Yes, all countries in the world could abolish it, but then that's a global thing, and then it'll never happen.)
It is not a better way when you want to buy cheap things... In most markets you can't buy things with your credit card unless you buy for more than 8 or 10 euros, because otherwise the seller loses all its benefits on credit card verifications.
edit : +1 @DE argument about the worldwide conversions
Digi I Love You.
Oh, but p.s. could you elaborate? Why would it turn into a global thing? And in terms of conversions, say if like 9p = 1 dollar, so they'd have to change it to 7p or 10p to 1 dollar since the 1p coin isnt available, why wouldn't they just times 9p by a number or something to make an amount that can be paid by coins? (I'm confusing myself)
Last edited by Quiraikotsu; 03-03-2008 at 02:52 PM.
1) If they don't turn it into a global thing, then you have currency conversion issues.
Originally Posted by Quiraikotsu
2) Okay, say someone wants to change 13cents of their currency (yeah, I know, dumb, but...) into another currency of equal value that doesn't use 1c coins. If that 13 cents is rounded up to 15 cents, money is created that wasn't there before. If it's rounded down to 10 cents, the person loses money. The only way to get around this is to tell the person that they can't change whatever amount of money they want (that is, they have to choose an amount divisible by 5), and that can cause problems. For example, it might prove to be a hassle to some people and they won't visit that country - so tourism goes down. Even if only a small proportion of travellers decides this, that's even more money lost.
Quira my love! You have returned to me!
This is actually a pretty hot topic amongst government classes in American high schools. Personally, I'm for abolishing the penny, it serves almost no purpose at all, and a vast majority, I think over 90%, of pennies are never used, but are rather sitting in a piggy bank/jar, or in a fountain somewhere.
Plus, they're fucking heavy and you need to carry around like ten pounds of them if you want to use them for anything useful.
1 and 2 cent pieces were abolished in Australia 16 years ago and we haven't had any problems. All electronic transactions stayed the same and all shelf prices stayed the same, the only difference is that the total price of our shopping gets rounded off to the nearest 5 cents. Sometimes that means you pay up to 2 cents more than you would have normally, other times you pay up to 2 cents less. It all balances out in the end, and my wallet doesn't get stretched and warped because of an abundance of useless coins!
The way it was achieved in Australia was that even after those coins were abolished, shops and banks would still accept them as currency. As soon as they were deposited into the bank (whether directly by the people or from the shops that had collected them) they were taken out of circulation. No problems there, and no people throwing out their coins.
Here's a little known fact for you, the 1 and 2 cent coins were melted down and given out as Bronze medallions in the 2000 Olympics.
I know this doesn't help your argument for the debate. :P
Last edited by MadDogMike; 03-03-2008 at 04:32 PM.
I doubt very much that the coins would affect inflation at all, nor would they have a big effect on demand. Natural inflation does not really have much to do with demand at all, it is simply a steady increase in the amount of money in circulation. And even if there was an inflationary change, the government could lessen it a bit buying/selling bonds (forgot which one).
Note that this is from a macroeconomics class I took last year, so if I'm wrong, I don't give a shit.
Ah rats. I was going to say the same stuff as MadDogMike, but about NZ. But now I guess there's not much point.
So instead, are you in England, Quira? I had no idea!
Yessss... Are you? I was gonna put that in my 'Location' thing but I cba'd. ENGLANDS THE BEST.
Except people didn't like it when I added the shock factor by saying
'If you eliminate the penny, it's the same as grabbing the union jack *grabs the union jack I stuck on the board* AND DOING THIS *RIPS IT UP*'
I thought the gasps were gasps of shock rather than of horror.
So needless to say. I lost the debate LOL.
LOL Mojo I never left you in the first place! ♥ I left here for about 5 months I think. This place is too clever for me xD