Take away the penny.

gurrera

gurrera

Registered
If they do, we will being paying 4 cents more for every thing we buy.:moon:

They will not drop the price.:banghead:

If something cost 11 cents, then it will be 15 cents, and if it cost 6 cents, then it will cost 10 cents.

Also when they add the 7% sail tax to the total, then they will do the same thig to that.

That doesn't sound like much, but if every one has 1000 transactions each year than that is $40.00 or more.

Sam
 
Plenty of countries have made the change without experiencing massive social/economic unrest. Stay calm and don't worry about it. Besides, what the hell do you buy that costs 6 cents?
 
I say get rid of it and the nickel. I read an artical a few months ago that said it cost's our government 2.8 cents to mint a penny and 8.4 cents to mint a nickel. WTF, why are we still using them?
 
Not alot with .06 but that would add up real quick and thats up to .06 on every transaction you make thats insane. That means instead of paying 4.01 per gallon of gas it will be 4.05, multiply that .04 by the 50 gallons in my truck, 12 gallons in my car and 6 gallons in the busa that comes up to 2.72 per fill up I fill up each one an average of twice a week that comes to 282.88 a year. Yeah its only a few cents but thats an average of 282.88 per year that I am just giving away to the oil companies that are already crippling this country, imagine everyone doing this how much more money are the oil companies making and in this way its free money to them because they can't round down. Yeah I will say I am against this 100%
 
KvHotDog4 said:
Not alot with .06 but that would add up real quick and thats up to .06 on every transaction you make thats insane. That means instead of paying 4.01 per gallon of gas it will be 4.05, multiply that .04 by the 50 gallons in my truck, 12 gallons in my car and 6 gallons in the busa that comes up to 2.72 per fill up I fill up each one an average of twice a week that comes to 282.88 a year. Yeah its only a few cents but thats an average of 282.88 per year that I am just giving away to the oil companies that are already crippling this country, imagine everyone doing this how much more money are the oil companies making and in this way its free money to them because they can't round down. Yeah I will say I am against this 100%
Click to expand...

That's not exactly how it would work.

First, assume that the merchant is going to round your total up to the nearest $.05, not down. That's a safe assumption.

But remember, that the effect is not per unit purchased, it is effective only on the balance of the entire transaction. This also means that if the total balance ends with a 0 in the tenths column, or with a 0 or 5 in the hundreths column, there will be no added expense to you because there is no rounding needed.

Let's break it down by vehicle at a price of $4.019/gallon for all vehicles...

Truck: 4.019 x 50 Gal = $200.95 --- This amount ends with a 5 in the hundreths column (an even nickel). No rounding required, so no extra cost to you.

Car: 4.019 x 12 Gal = $48.228, or $48.23 when rounded up to the next even cent --- Round up to the next nickel, you pay $48.25 total.

Busa: 4.019 x 6 Gal = $24.114, or $24.12 when rounded up to the next even cent --- Round up to the next nickel, you Pay $24.15 total.

So if you fill up each of those vehicles twice a week, that's 104 times per year.

104 x (.02 + .03) = $5.2

So... at that given fuel price and number of fill-ups per year, and if we are conservative and always round up instead of to the nearest cent or nickel, this would cost you an extra $5.20 per year.

Not all that bad. :dunno:

(I'm doing this on the fly, so correct me if I miscalculated anything :laugh:)
 
To quote one of my favorite movies...."Check out the big brain on Daniel..." (and the movie is?)

ChattanoogaBusa said:
That's not exactly how it would work.

First, assume that the merchant is going to round your total up to the nearest $.05, not down. That's a safe assumption.

But remember, that the effect is not per unit purchased, it is effective only on the balance of the entire transaction. This also means that if the total balance ends with a 0 in the tenths column, or with a 0 or 5 in the hundreths column, there will be no added expense to you because there is no rounding needed.

Let's break it down by vehicle at a price of $4.019/gallon for all vehicles...

Truck: 4.019 x 50 Gal = $200.95 --- This amount ends with a 5 in the hundreths column (an even nickel). No rounding required, so no extra cost to you.

Car: 4.019 x 12 Gal = $48.228, or $48.23 when rounded up to the next even cent --- Round up to the next nickel, you pay $48.25 total.

Busa: 4.019 x 6 Gal = $24.114, or $24.12 when rounded up to the next even cent --- Round up to the next nickel, you Pay $24.15 total.

So if you fill up each of those vehicles twice a week, that's 104 times per year.

104 x (.02 + .03) = $5.2

So... at that given fuel price and number of fill-ups per year, and if we are conservative and always round up instead of to the nearest cent or nickel, this would cost you an extra $5.20 per year.

Not all that bad. :dunno:

(I'm doing this on the fly, so correct me if I miscalculated anything :laugh:)
Click to expand...
 
VaBusa said:
Daniel, you're such a showoff :rofl:
Click to expand...

Sorry, I really didn't mean to come off like that. Just thought it would be a difficult point to make without some details.

Sent from my iPhone using The Force
 
So your saying that items purchased (using fuel as an example) will still have a penny amount and show the consumer 4.01 however when the total of all goods purchased is added together then and only then is it rounded to the nearest .05.

I don't see how this will work, because bring in another example of groceries, everything having a penny amount the total may be rounded to the nearest .05 but when its broken down the business would have to pay out the penny amount (which would no longer exist), and if they rounded up to the nearest .05 on each item the business purchased and then when selling only rounded to the nearest .05 on the grand total they would be loosing money. Probably only enough to cut into their profit, so in-turn for the business to make the same amount of money they would have to transfer that extra change into the cost for the customer. So in the end it will cost at most an extra .04 per item bought (that you won't see because the business adds that in on their cost), then it will have to be rounded again once you get your grand total.

I know its only change, but money is money and I don't see the need of just giving it away. If anyone is willing to just freely give away any form of money I will gladly accept it. lol.
 
they are only going to round up on the TOTAL purchase that you make not every single item. the penny is a waste of resources and money that our Gov cannot afford (due to wasteful spending of course )
 
Something that's important to consider is that the extinction of the penny would really only need to affect cash purchases, and business-to-business transactions generally are not using cash. Any other form of payment could still account for individual cents. As quickly as we are progressing toward a cashless society, I believe we will see discontinued use of the penny as a physical object, but not the value of $.01, which could still easily be used.

What could potentially be a real game changer would be to discontinue use of the penny and the nickel. To quit using both of those coins could render the hundreths column obsolete in consumer pricing. Then we could be looking at goods in a pricing system based on a 1/10th dollar rather than a 1/100th (or 1/20th). So your prices for individual goods would be $1.00, $1.10, $1.20, $1.30, etc. Again, businesses will not lower prices to accommodate the change in currency policy because there would be no neutral ground for them. They would either lose money by lowering prices to meet the new standard, or gain money by raising prices to meet it. Of course, that's assuming that the price was not at an even 1/10 dollar increment to begin with.

I think the effects of the discontinuation of the nickel are probably more clear-cut at this point than the effects of losing the penny, simply because that second place after the decimal would no longer have a reason to be on price tags.

There's really waaaaaay more to it than this, but at least this is some food for thought. :beerchug:
 
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