OT Did You Know It Costs More Than a Penny to Make a Penny?

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http://gizmodo.com/5734677/did-you-know-it-costs-more-than-a-penny-to-make-a-penny
They should stop making them.
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wrote:

Nickels too? They cost 9.2 cents last year. 80% over face value, they are a worse/better buy than pennies. http://www.usmint.gov/downloads/about/annual_report/2010AnnualReport.pdf [page 29]
I'm not ready to round everything off to 10cent increments just to save $42million.<g>
Jim
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responding to http://www.homeownershub.com/maintenance/OT-Did-You-Know-It-Costs-More-Than-a-Penny-to-Make-a-Penny-615716-.htm DA wrote: Jim Elbrecht wrote:

I don't believe their production costs have direct relation to the face value. Since they take part in hundreds (thousands?) of transactions, their production cost is pretty much the government's cost of enabling this many transactions, each of which will get taxed at some point. If there was VAT tax in the US, it would make the calculation a bit easier but in any case, someone will get some income from the transaction which will then be taxed either on personal or corporate level.

Yeap, I thought so, too. Since there is no inflation in the US (or so they say anyway), the only result of the elimination of the penny would be the rounding up of all prices to the next smallest coin.
------------------------------------- /\\_/\\ ((@v@)) NIGHT ():::() OWL VV-VV
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On Jan 17, 3:48 pm, info_at_1-script_dot snipped-for-privacy@foo.com (DA) wrote:

Dunno about where you are but it is becoming common here for businesses to ignore the odd pennies. If the change will include 4 pennies, they just give you a nickel. Change includes 1 penny, they charge 1 penny less. Customers commonly toss odd pennies on the counter over and above the bill.
I find it very odd considering the non-respect of a penny that gas stations still price gas at $3.19 9/10. Businesses should round their prices up or down to eliminate the odd pennies at the end.
Harry K
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They say we must add to the 17,000,000,000,000 debt, thats trillion.
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On Mon, 17 Jan 2011 14:46:30 -0800 (PST), ransley

I haven't done the math, but a friend claims he has. He says the national debt is around 6 times the total amount of cash in circulation.
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Metspitzer wrote:

http://gizmodo.com/5734677/did-you-know-it-costs-more-than-a-penny-to-make-a-penny
Yes, I know much of the rest of the world has gotten rid of their low denomination coins, so why can't we?
I hope some investigative journalists dig deep enough to tell us the whys and whos about congress being against getting rid of pennies for quite some time now.
Who is influencing our "hired hands"* in Washington to keep pennies in existance? Is it the metal producers, the US Mint workers union, the transportation companies who take them to the banks, or probably all of the above?
Jeff
* "Our hired hands in Washington" is how Will Rogers referred to congress.
--
Jeffry Wisnia
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wrote:

We REALLY NEED some efficeny experts to make necessary changes.
one and 5 dollar bills shouldnt be paper, make them low weight coins for easy carrying.
round everything to quarters, elminate pennies nickels and dimes.
We DONT need a post office on every corner, none closer than say 5 miles, contract out much to grocery and other stores, elminate saturday and wednesday deliveries. they arent needed.
If you did this all thru government we wouldnt have a deficit:)
and taxes could be lower
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Most of the polls don't want to stop making pennies. Largely because it is viewed as a way for state governments to get extra money by rounding sales tax up to the nickel.
--
"Even I realized that money was to politicians what the ecalyptus tree is to
koala bears: food, water, shelter and something to crap on."
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Kurt Ullman wrote:

Are you saying the state gummints would only round sales tax up and not down?
I'm not saying I don't think they wouldn't, but.....
I was really amazed when Massachusetts, my place of residence, repealed the sales tax on liquor which had been put in place last summer.
http://tinyurl.com/6avggtk
Jeff
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Pretty much, especially in current budget conditions.
--
"Even I realized that money was to politicians what the ecalyptus tree is to
koala bears: food, water, shelter and something to crap on."
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On 1/17/2011 5:15 PM, Metspitzer wrote:

http://gizmodo.com/5734677/did-you-know-it-costs-more-than-a-penny-to-make-a-penny
Yes but the US Mint and the US Treasury are two separate entities. In Canada $1 coins (loon?) are used all the time because they stopped making $1 bills. That is why we never adjusted to the dollar coin, because the Treasury won't stop loosing money making paper dollars.
The pennies are really bad, just think of how long they have been our lowest value coin. It's time to say goodbye to the pennies and the nickels and make dimes the lowest value. Then the treasury can start making $1000 bills again. Although I think the thousand $ bill will never return, with the trend of electronic payments that never need coins or paper bills. Paper money is too difficult to trace.
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One of the major reasons for the dollar coin flop is the size. It is too close to a quarter. I thought that after the Susan B anthony fiasco they would have learned but nooo...here comes the new one with the same flaw.
I would much rather carry a dozen dollar coins than have my billfold cluttered up with paper dollar bills. I have tried using the dollar coins but businesses really don't like them.
Harry K
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Harry K wrote:

I hear that a lot, but I don't buy it. ALL paper money is exactly the same size and weight. Solution? You actually have to look at it. No reason the same doesn't apply to coins.
The dollar coin will be hugely successful the moment they stop printing paper ones.
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the blid cant identify the difference between bills, theres a lawsuit about this.
money must be redesigned, better to go efficent, and give vending companies a short term tax break to cover upgrade costs.
many vending machines accept credit/debit cards.
which is more efficent minimizes break ins and no cash counting
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On 1/18/2011 7:25 PM, snipped-for-privacy@aol.com wrote:

Vending machine are all set. They have been accepting $ coins for many many years. Some back to when the SBA first came out.
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There is a big difference between "successful" and "popular". Give the coin a distinctive size so you can tell it by feel would be a big start. that the "powers' can't seem to _get_ that simple concept is amazing.
Harry K
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Harry K wrote:

To make it very distinctive would cause people to complain that it is too large and also drive up cost and weight. We had large coins and people didn't carry them.
Screw "popular". It's money. Someday we'll be doing it all with our phones or other e-methods anyway.
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Who says it has to be "big" It can be smaller, even a little bit bigger. The old dollar coins for sure were a nuisance. They were in common use in this area up to around the mid 50s. I could still get a few in change after that when I came back on furlough. Advantage? Great 'break the ice' with the girls back east when you could pull out a few.
Harry K
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On 1/18/2011 7:16 PM, Rick Brandt wrote:

Exactly.
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