Should we get rid of the penny? That’s the question posed at Gather Little By Little today.
He shows how the price of materials and production has gone up so much, that it costs more than $0.01 to make a penny these days.
But, should we get rid of those little Lincolns?
I say, "No way!"
I don’t use pennies much. In fact, I don’t use cash much at all. I use debit cards and gift cards for the most part.
But, I’m afraid of what would happen to prices of items if we had to round to the nearest nickel.
I doubt retailers would round down on items, so it seems prices would go up 1-4 cents to eliminate the need for pennies.
That $0.99 item? Oh, it’s now $1 on shelves. Add on 6 or 7 or more percent sales tax, and you’re looking at $1.07. Oh noes! I guess you’d better make that $1.10.
It seems that for most items, prices don’t end in a 0 or a 5. That means that if we were to get rid of pennies, prices of just about everything would go up a few cents.
Not a ton of money, but it will certainly add up over time.
What do you think?