Jump to content
Sign in to follow this  
chconline

Canada to pull the penny from circulation

Recommended Posts

http://news.yahoo.com/blogs/sideshow/canada-says-going-pull-penny-circulation-221558392.html

 

The Canadian government announced on Thursday that it plans to pull the penny from circulation at the end of 2012, saying the copper-coated currency is more expensive for the Royal Canadian Mint to produce than its actual currency value.

 

"Pennies take up too much space on our dressers at home. They take up far too much time for small businesses trying to grow and create jobs," said Finance Minister Jim Flaherty. He also said it costs 1.5 cents to produce each penny.

 

"We will, therefore, stop making them," he said.

 

Nonetheless, the news has been causing quite a stir across Twitter today.

 

The U.S. faces a similar dilemma, where it costs nearly two cents to produce a single penny. U.S. pennies are in fact composed primarily of zinc, and have a thin copper coating. The Wall Street Journal wrote that the Obama Administration has proposed using less expensive materials in the production of pennies and nickels, but public misinformation on the perceived value of coins would likely stir up controversy.

 

It could also be disastrous news for at least one Portland, Oregon, nightclub.

 

During the 2008 presidential campaign, Obama discussed phasing out the penny, saying, "We have been trying to eliminate the penny for quite some time—it always comes back. I need to find out who is lobbying to keep the penny." However, Obama said that fellow presidential Illinois native Abraham Lincoln shouldn't be phased out from our currency. "Oh, you think it's Illinois? You're blaming us?" he joked. "I will seriously consider eliminating the penny as long as we find another place for Lincoln to land." Lincoln, of course, already graces the front of the $5 bill.

 

The Canadian penny will still be accepted indefinitely as a form of currency, but the government says it will eventually require cash transactions to be rounded to the nearest five-cent increment. Customers are already forbidden from using more than 25 pennies in a single purchase.

 

"The penny has simply outlived its purpose," said Senator Irving Gerstein. "It is a piece of currency, quite frankly, that lacks currency."

 

The Associated Press notes that some countries have already eliminated pennies or their monetary equivalent from circulation, including Finland, Sweden, Norway, Denmark, Israel, the Netherlands, Australia, New Zealand, France, Spain, South Africa, Switzerland and Brazil.

 

A few days old, but I can't remember the last time I've paid for stuff with cash.

Share this post


Link to post
Share on other sites

About time - I think you guys are making a wise choice - not to mention most people use CCs nowdays.

Share this post


Link to post
Share on other sites

Why do I have a feeling the whole rounding to the nearest 5 cents will mean everything after tax is going to be x.x3 or x.x8?

Share this post


Link to post
Share on other sites

I do, cash is king. :P

 

On a serious note, I wish the US would do away with it too. Of course then they'll have to change the wording on the "take a penny, leave a penny" jar at the store. :D

Share this post


Link to post
Share on other sites

I do, cash is king. :P

 

On a serious note, I wish the US would do away with it too. Of course then they'll have to change the wording on the "take a penny, leave a penny" jar at the store. :D

:P We can just eliminate the whole thing.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

×
×
  • Create New...