Friday, March 30, 2012

No More Pennies in Canada

In the news this week, Canada has officially decided to stop supporting pennies.  Later this year, they will stop making pennies.  Some people from Ottawa, speaking for all of Canda, said there are two main reasons for this decision.

#1. It'll save them money.  It costs 1.6 cents to make a 1 cent penny, so really, the government is losing money by making pennies.

#2. Pennies aren't very useful anymore. They're more of a nuisance than anything else.

There are currently 30 billion Canadian pennies in existence, and as time goes on, they will eventually disappear from active currency.  In the meantime, as the penny gets phased out of existence, prices are expected to be rounded up or down to the nearest nickel, rather than the nearest cent.

What do you guys think?  Is Canada making a good decision here?  Should the United States follow in their footsteps?  Or will this destroy the Candian economy?  Basically, a penny for your thoughts here.


Anonymous said...

The United States has been talking about discontinuing the penny for some time now, for basically the same reasons that Canada has decided to go ahead with the plan. The difference between the United States and the rest of the first world is the rest of the first world actually does things eventually instead of talking them to death for years....but I digress.

One major plus to getting rid of the penny would be that stores couldn't do that lame trick where they charge "5.99" or a similar price trying to make it look like it's a dollar less than it actually is. Do people seriously fall for that?

And once they get rid of the penny maybe they can finally get started on phasing out the dollar bill in favor of a coin like they've been talking about for almost a decade, since the average dollar lasts less than a month and is costing a ton to keep in circulation.


I still own many Canadian pennies and as well as American pennies! It seems odd that the penny will be no more, the very thing that I liked finding every once in awhile is where people who were very lazy would try and pass a Canadian penny as an American one.

The American penny and the Canadian penny are very similar in looks and in size but the Canadian held the real value instead of the American one, at one point in our history our pennies did hold value but not anymore.

The things that we used to know and love are slowly disappearing from our very lives, what's next?

It scares me to think such things!

Justice said...

I agree with Alysia about the sense of instability that the disappearance of things we're used to (and even take for granted) brings. It *is* scary. I know this comparison isn't completely 'apples to apples', but I'm still slightly in disbelief that Polaroid instant film is no longer being made -- how much more would the absence of pennies shake up the thing I know as 'normal life'!

"One major plus to getting rid of the penny would be that stores couldn't do that lame trick where they charge "5.99" or a similar price trying to make it look like it's a dollar less than it actually is."

I wonder if business people will be one of the major groups protesting the change if/when the US starts seriously attempting to discontinue the penny.

Jesse said...

It will barely make a difference in our economy, and the estimated annual production savings (due to the 1.0~1.6 thing, and production of pennies in general) is approximately 11 million dollars. (Here [it's a link! clicky!] is just one of many sources for this information.)

I don't think there will be too many economic hardships from this change...!

Canadian here: I'm all for it! :)

CTipp said...

Michael!! Apollo Justice 2

Invisible said...

I honestly don't know if I agree or disagree, Canada can do what they want as long as it doesn't end up hurting them it does not bother me that much. I will be honest though it was always fun and exciting to look at my change and find that different penny (any Canadian coins I find I put aside to see how odd they are compared to ours so I have ended up with a small collection over the years). I will personally miss them, but I will still have my collection to look at and it will take awhile for them to become, like me, invisible.

Anonymous said...

I'm all for such a thing in the US, I hate standing at the cash desk like forever and trying to find coins to pay those $5.99

Anonymous said...

I completely forgot about this. Now I have to go to the bank and turn all my pennies into dollars... and my piggy bank is filled to the brim with pennies. Dag nabit.