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Obama Pushes For Cheaper Pennies
Hugh Pickens writes "Time Magazine reports that hidden deep inside in the White House's $3.8 trillion, 2,000-page budget that was sent to Congress this week is a proposal to make pennies and nickels cheaper to produce. Why? Because it currently costs the federal government 2.4 cents to make a penny and 11.2 cents for every nickel. If passed, the budget would allow the Treasury Department to 'change the composition of coins to more cost-effective materials' resulting in changes that could save more than $100 million a year. Since 1982, our copper-looking pennies have been merely coppery. In the 1970s, the price of copper soared, so President Nixon proposed changing the penny's composition to a cheaper aluminum. Today, only 2.5% of a penny is copper (which makes up the coin's coating) while 97.5% is zinc. The mint did make steel pennies for one year — in 1943 — when copper was needed for the war effort and steel might be a cheaper alternative this time. What about the bill introduced in 2006 that the US abandon pennies altogether.? At the time, fifty-five percent of respondents considered the penny useful compared to 43 percent who agreed it should be eliminated. More telling, 76 percent of respondents said they would pick up a penny if they saw it on the ground."
Australia got rid of 1 and 2c pieces years ago and that didn't kill us at all.
That doesn't mean you people don't advertise things at 99 cents, just that you total up the bill and then round to the nearest 5 cents. Sometimes you win (all of 2 cents on a single bill) and sometimes you lose (again, all of 2 cents on a single bill).
We also ditched $1 and $2 paper currency for $1 and $2 coins. That was also a good move in getting rid of those ratty dollar bills. The US cold easily do the same thing as you already have $1 coins in circulation. About the only people who will notice a change are the strippers who will now have use their coin slots.
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Round here we have a toll booth with coin baskets thats: 40 cents.
That's right - you need at least a quarter, a dime AND a nickle.
Not 50 cents. Not 25 cents. FOURTY.
I'm sure a lot of out of towners just toss in two quarters and have a chuckle at the local chuckleheaded government's tricks.
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I do this with pre-1982 pennies. I have many rolls of them now, I drop all the pennies I get in change into a jar and every once in a while sort them, roll up the copper ones, and bring the zinc ones to the bank to get counted and deposited. It's not like it's a retirement fund or anything, but it takes just a few minutes every few weeks and my kids help me which is fun, so I figure why not?
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I heard of this before; the chain restaurant doesn't want to take the hit when rounding down, so they just add the fractions to the next bill and hope nobody notices or cares. The US method of listing raw price then adding sales tax after (do they do this in fast food places?) means that this is difficult for customers to detect..
The ad says $9.99 plus sales tax which they often say anyway and tags used within the store are printed locally. It is doable but no store would consider it unless it's forced on them which I suspect the government does no want. It's easier to hide sale tax spikes from people when they can see up front that the cost has risen.
In their defence, IMHO they have a legitimate reason to do this- their locally-printed/local-only prices would appear more expensive against nationally-advertised prices that (as mentioned above) don't include sales tax because it varies across the US.
Yes, maybe people should notice that the national price excludes sales tax and the local one doesn't, but in practice enough people won't that it puts the latter at a competitive disadvantage.
(FWIW I live in the UK where consumer-oriented prices *are* usually quoted with VAT (i.e. sales tax) included and prefer it that way- but that's because we have uniform VAT across the country. I understand why the US doesn't include it.)
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The way to do this in the U.S. would be as follows:
This would have several advantages. It would eliminate the current advantages that online stores have over brick-and-mortar retailers. (Someone buying at Amazon or Newegg would pay a price with the 7% included, just like someone buying at B&N or Fry's.) It would make it easier for consumers to figure out how much something is actually going to cost them out-of-pocket. And you know what? If a business feels that the 99-cent or $4.99 or $9.99 or $99.99 price point is important, they'll figure out a way to reduce the cost of their product so it hits that price point even with tax already included. So, in the long run, it is likely to save consumers money.
It should be noted that before the Civil War, "United States" was plural - "these United States". Afterwards, it was singular - "the United States".
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Here in Germany, we pay the price as displayed, no matter how we pay. I actually expect that!
Everything else seems stupid, not?
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True story...
On returning from a lunch break, my coworkers and I were talking about if anyone would pick up a penny in the parking lot. Most would not, some would. So the question - how much would someone have to pay you to pick up a penny (for those that normally would not). We worked in IT at a call center. We came up with an testing idea...
The bathroom was filthy - it's a call center. We put a two quarters in each urinal. Then we went back to check on it 30 minutes later. How long would it take for those piss covered quarters to be picked out of the urinals?
First check (30min), they were all gone.
So we just put a single quarter in there, and re-checked in 15 minutes. It was gone already.
So we put a dime in one, a nickle and 2 pennies in another, and a penny in another. In 15 minutes, the dime and nickle were gone, but the pennies remained. We checked again about 20minutes later, and the group of pennies was gone, but the lone penny remained. We were working too, and if memory serves, we missed the next scheduled check, but the all change was gone on the next check.
We continued playing with amounts throughout the following days. Quarters went very very quickly, as if no one had any reservations on fishing them out of a well used urinal. We had been thinking that, just maybe, we got unlucky with the timing, and the cleaning staff was grabbing them... but we were all eventually 100% convinced that was not the case - they went to fast, and too often, and cleaning staff didn't make rounds anywhere near that much.
We spent about 2 weeks of randomly tossing loose change in urinals and cracking up about how it vanished so quickly into the hands of call takers - all using shared phones, keyboards, mice, etc. We were having a swell old time with it.
Then one day, we were in the common breakroom, and one of us bought a soda with a dollar. They got back 30 cents in change (a quarter and a nickle), and readily picked it up and pocketed it. Two and two became four in my head.... I asked my coworker where he thought that change came from.
We stopped putting change in the urinal that day, and took a long hiatus from grabbing the change from the vending machine.
If you ever see someone leaving their change in a vending machine, think twice before you judge them :-)