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The US Mint lost $69M making pennies last year

qz.com

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Re: The US Mint lost $69M making pennies last year

#81

Post by minikites »

eli wrote: post #48
rrauenza wrote: post #40

Related: US nickels cost seven cents to make. Scientists may have a solution https://qz.com/1316940/us-nickels-cost-seven-cents-to-make-s...

Quartz is really owning this genre of badly misunderstanding what the mint does. The cost of manufacturing coins is an expense that has no bearing on the denominated value of the coin.

The point of currency is to facilitate commerce and pennies don't do that. You can't use them in parking meters or vending machines (for example) so we're spending tax dollars to create objects with no function.

Re: The US Mint lost $69M making pennies last year

#82

Post by ceejayoz »

acdha wrote: post #62
will_brown wrote: post #25

Earlier quoted context omitted.

It’s actually the people who use credit/debit cards to make purchases who raise the prices on all goods/services for people who pay cash. The average merchant pays 2.3-3.5% per swipe, as a result prices are increased across the board and passed on to consumers, no matter if they pay with card or cash.

Those costs have been driven down by Stripe and cash isn’t without its own costs. I used to favor cash myself but a couple of local businesses here recently started requesting credit cards because it’s cheaper than dealing with counterfeiting.

Stripe costs 2.9% + 30¢.

Merchant accounts have long been below that, they were just a pain to get, and generally required hardware from the bank.

Re: The US Mint lost $69M making pennies last year

#83

Post by Spooks »

boromi wrote: post #78

I think Canada has got rid of pennies; US should also follow that lead, hopefully.

Canada did! The last Canadian penny was minted in May 2012, and ceased the distribution of them as of February 4, 2013.

No real issues either (it still remains legal tender). Non-cash transactions are still denominated to the cent, the rest is rounded.

On the positive side the mint has more coin in their bank now!

Re: The US Mint lost $69M making pennies last year

#84

Post by minikites »

Finnucane wrote: post #2

The point of the mint is making money, not making money.

Pennies are not effective as currency. You can't use them in places you typically use coins (parking meters, vending machines, automated road toll collection) so we're using tax dollars to fund the creation of useless zinc circles.

Re: The US Mint lost $69M making pennies last year

#85

Post by djrogers »

curun1r wrote: post #75
wolco wrote: post #33

Earlier quoted context omitted.

You are forgetting sale tax which changes the final price (if there exists tax is your region)

Then if we could pass a law mandating that prices be displayed inclusive of sales tax, that'd be great. One of my favorite parts about going to Europe is being able to add up prices in my head and have it match up exactly with the final total. The US system is nonsensical and shouldn't be used to justify other nonsensical policies like the continued use of the penny.

The problem with all prices being shown inclusive of tax is that the amount of the tax becomes forgotten over time. By having tax added and called out on the receipt at the register, everyone is reminded many times per day how much sales tax they're paying.

Re: The US Mint lost $69M making pennies last year

#86

Post by slavik81 »

Ensorceled wrote: post #4

Canada got rid of the penny 5 years ago and the paper $1 in the 80s. We also switched to metric in the 70s. We’re not that dissimilar from the US but they seem to have an inability to make these kinds of systemic changes.

They've done some of that in the past. The United States had a half-cent coin until 1857. When it was coin was eliminated, it was more valuable than the penny is today[1].

There is also a US $1 coin. They were widely used in Equador when I visited in 2005, because their currency was pegged to the US dollar. I spent a day in Miami on my way back home and I left a few as tips. People were very confused by them. It seemed kind of funny to me that a US coin was more commonly used outside the US than inside.

[1] See CPGrey's "Death to Pennies". https://youtu.be/y5UT04p5f7U

Re: The US Mint lost $69M making pennies last year

#87

Post by slavik81 »

wolco wrote: post #35
refurb wrote: post #10

Earlier quoted context omitted.

Walking around with 2 lbs of loonies and toonies in your pocket sucks to be honest. That said, I probably use cash a handful of times each year. Getting rid of the penny was smart though.

I think we rushed away the penny too quickly. Glad they stopped at 2 dollars the 50 dollar coin just doesn't seem right.

I'm glad to see the penny gone. They were more trouble than they were worth. Why do you say it was too soon?

Re: The US Mint lost $69M making pennies last year

#88

Post by VirtualAirwaves »

jacobsenscott wrote: post #79

As long as there's some old fossil in the senate with fond memories of buying a salt water taffy for a penny, the penny will be with us.

Hey @dang -- why do you tolerate ageism here? Certainly you don't want fodder for an age discrimination lawsuit against YC do you?

Re: The US Mint lost $69M making pennies last year

#89

Post by djrogers »

extralego wrote: post #77
tetromino_ wrote: post #59

Earlier quoted context omitted.

That only works if you're lucky enough to not regularly need a pocket full of coins to e.g. use the washers in the next-door laundromat.

I wonder where these people live where they don’t experience homeless people begging for their change daily. I have absolutely no question about what to do with my extra change. This might top the list of most arrogant and out-of-touch HN comment threads I’ve seen.

> I wonder where these people live where they don’t experience homeless people begging for their change daily.

Most places in the country? You appear to be in somewhat of a bubble - you really should get out once in a while.

Re: The US Mint lost $69M making pennies last year

#90

Post by murukesh_s »

mertd wrote: post #28
murukesh_s wrote: post #16

Wondering if someone is collecting them and extracting the metals out and selling for a profit?

That would be a federal crime, at least for now. But there seem to be people hoarding pennies in hopes of legislation to change.

What if it goes out of circulation? Is it legal then?
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