Join Date: Aug 2008
Location: western Massachusetts
Mentioned: 0 Post(s)
Canada to stop making pennies
Canada will stop minting pennies this year. Each one costs 1.6 cents to make and managing them costs retailers more than they're worth. They'll still be legal tender but banks won't distribute them so they'll slowly go out use.
What happens without pennies? Most transactions are electronic and those continue to be paid to the penny. Cash transactions will round to the nearest 5 cents. That means you'll never be more than 2 cents ahead or behind and over time will break even.
What's keeping the US from getting rid of pennies? I'd wager it's money. Pennies are mostly zinc and mining interests don't want to lose government business.
I was on a US Air Force base (visiting a cousin) in Germany and there were no pennies on base. A colonel explained to me that it was because pennies were not worth the trouble. This was 1989. US military bases overseas haven't used pennies in decades.
If we're looking for ways to reduce wasteful government spending, how about we stop making obsolete coins. I'd love to see pennies slip into history.
To view links or images in signatures your post count must be 0 or greater. You currently have 0 posts.