Canada Eliminates Penny: Should U.S. Follow Suit?

canadian penny

The 155 year history of the Canadian penny came to a close on February 4th, 2013. The devaluation of the Canadian dollar meant that the penny was now worth one twentieth of what it was worth when first introduced. At the time of elimination, the Canadian penny was only worth about 63% of its production cost. In other words, it cost more to make the penny than the penny was even worth. The elimination of the penny is expected to save the government $11 million a year and reduce handling costs by $140 million.

Penny-rounding

All prices must now be rounded to the nearest 5 cents, since the nickel will now be the smallest unit of money. However, electronic money will still be rounded to the nearest one cent. This is a change that was perhaps inevitable, but nonetheless will be very interesting to see how it plays out in the next couple of years.

Source: http://www.cicsnews.com/?p=3033

The question now is: Should the U.S. consider doing the same? On one hand, the United States can wait and see how Canada handles business without the penny to determine if it is worth it. On the other hand, inflation will eventually render the penny worthless and not worth producing anymore. In my opinion, it is not too early for the United States to take the initiative and eliminate the U.S. penny. Pennies are no longer needed in today’s society, and retailers will just have to deal with “.95” prices instead of “.99” prices.

So what do you guys think about the whole penny dilemma? Should it stay or should it go? Vote in the poll down below.

Please like the post if you enjoyed reading, comment if you have feedback, and share the link to my blog with your friends.

Thanks,

Jeff

Advertisements

About Pierro Perspective

Die hard Boston sports fan
This entry was posted in Current Events/Political Issues and tagged , , , , , , , . Bookmark the permalink.

2 Responses to Canada Eliminates Penny: Should U.S. Follow Suit?

  1. japierro says:

    I haven’t used a penny in many years, and when I get them I separate them out from the rest of my change and put them in a jar to be eventually rolled and brought to the bank.Since you can’t buy candy for one cent any more I guess there’s really no need for the penny–but they’ll have to rename those stores to Nickel-Candy Stores.

  2. SuperkatWins says:

    Oh, no! I love pennies, I have a soft spot for them, as many others consider them valueless. No, no, no, don’t get rid of the penny! :/

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s