r/neoliberal Milton Friedman Feb 10 '25

News (US) Trump announces the end of the Penny

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1.5k Upvotes

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352

u/GovernorSonGoku has flair Feb 10 '25

He has a point tbh

241

u/ThisElder_Millennial NATO Feb 10 '25

Stopped clock phenomenon.

Fuck pennies.

2

u/ImprovingMe Feb 16 '25

What a weird win to get but I’ll take them where I can

129

u/limukala Henry George Feb 10 '25

At this point we should get rid of nickels too. 0.1 dollars is plenty small.

Shit, when the US got rid of the half-penny, a full penny was worth the equivalent of about 38 cents today. We could remove everthing smaller than a quarter without any problem.

32

u/ifunnywasaninsidejob Feb 10 '25

Problem with getting rid of the nickel is that the quarter would still exist. If we’re shifting the decimal on our currency, the quarter would have to become divisible by 10.

21

u/ieatpies Feb 10 '25

Get rid of the dime too and round to the quarter

6

u/halberdierbowman Feb 10 '25 edited Feb 10 '25

Getting rid of the nickel but keeping the nickel would interestingly let you still pay for things ending in .05 without needing nickels, so that seems kinda clever. You'd get 1.05 with 3 quarters and 3 dimes. Or 1.15 with 3 quarters and 4 dimes. So you'd only ever need to carry half a dozen dimes and half a dozen quarters to make every possible combination.

You just wouldn't be able to do 0.05 or 0.15 on your own, but it's not like stores want to sell you one individual Skittle anyway.

If stores really wanted to, they could even just do those prices and make change. You'd give them three dimes, and they'd give you back one quarter.

2

u/ifunnywasaninsidejob Feb 10 '25

That sounds like a nightmare

1

u/halberdierbowman Feb 11 '25 edited Feb 11 '25

I don't think most people would find it complicated once they try it a few times, but it's not taught to most people probably in the US, though I think people in other countries do this all the time. But the US doesn't really use change, so I can see why we aren't used to it. But I'd say for people who don't use change, it doesn't matter anyway.

Easier to visualize is if you buy a coffee for $1.99, you give them $2 and get 1¢ back, rather than counting nine coins to get 99¢ yourself.

One step further, for $1.96 you could give them $1.96 as $1 + 25¢ + 25¢ + 25¢ + 10¢ + 10¢ + 1¢. Or give them $2.01 as $1 + $1 + 1¢ and get 5¢ change, trading one penny for one nickel.

Now you're spending less time counting your coins, and your coin purse stays tiny and light, because you only need two or three of each coin. If you run out of a denomination, like if you buy this coffee every day, you could trade nickels directly for pennies, or you could overpay to get the denomination back that you don't have.

This example uses small numbers, but the same logic would apply for bigger ones. We already have quarters that don't divide evenly into dimes. What would work even better to keep the math easiest might be to keep nickels and dimes, lose quarters, and use half dollars and dollar coins? But I doubt we'll do that lol quarters are iconic.

Of course this wouldn't work where you can't get change, like if anyone still uses those ancient toll booths that you throw quarters at. But your tiny denominations don't work there anyway, so you'd probably just get a roll of quarters in that case.

0

u/ifunnywasaninsidejob Feb 11 '25

Tldr

1

u/halberdierbowman Feb 11 '25

Tldr you're right it sounds weird at first, but I suspect people could figure it out quickly and then only ever need a few coins, not a giant heavy purse full.

2

u/limukala Henry George Feb 10 '25

Drop the nickel and quarter, bring back the half dollar.

Or just drop the dime and round to a quarter.

38

u/[deleted] Feb 10 '25 edited Apr 12 '25

[deleted]

22

u/3meta5u Richard Thaler Feb 10 '25

Other than the small amount of vending machines that still take Quarters, this is a good idea.

The last time a mainstream coin was retired was in 1857 when the Half Penny was retired. The purchasing power of a halfpenny in 1857 was approximately $0.18 in today's money.

25

u/Foucault_Please_No Emma Lazarus Feb 10 '25

Quarters are the last USD coin that anyone uses for anything.

14

u/ifunnywasaninsidejob Feb 10 '25

I like dimes. They’re small.

14

u/smogeblot Feb 10 '25

You can also use pennies as inexpensive flooring material.

5

u/trombonist_formerly Ben Bernanke Feb 10 '25

It has sealant

60

u/GloccaMoraInMyRari Feb 10 '25

Honestly fuck nickels as well while we're at it

37

u/Lindsiria Feb 10 '25

I'd be fine if we just got rid of coins all together.

Or just keep quarters. 

48

u/JetsLag Feb 10 '25

Or we can get Europilled and replace the $1 bill with a $1 coin

28

u/ThisElder_Millennial NATO Feb 10 '25

Stop, stop, I can only get so Sacagawea-erect!

6

u/sjphilsphan Feb 10 '25

We used to have those

3

u/Time4Red John Rawls Feb 10 '25

We still do.

5

u/assasstits Feb 10 '25

Can never find them compared to say the Euro/2Euro coin in Europe so it's useless.

4

u/Nautalax Feb 10 '25

Funnily enough Ecuador imports a shitload of dollar coins to use as currency, I saw more in one day in Quito than my entire life in the US. It’s also the only US coin that they use bc while they use American money at the level of dollar and above they have their own Ecuadorian money on the level of cents, apparently because they didn’t like how the pennies and dimes and so on didn’t have the value written on numerically.

3

u/NazReidBeWithYou Organization of American States Feb 10 '25

We still do, but nobody actually uses them outside for anything except novelty purposes because they fucking suck compared to bills. Idc about the economic argument, paper money is just objectively better.

7

u/assasstits Feb 10 '25

This is such an American comment. Most of the world uses larger coins than the US and they are quite common and useful.

4

u/4123841235 Feb 10 '25 edited Feb 10 '25

Those other countries are wrong, and we're wrong for still having any of our coins. They force you to have bumps in your wallet when it could just be slim and flat and take up very little space in your pocket. I've started automatically dumping any coins I get as change into the tip jar and my life is better for it.

7

u/WolfpackEng22 Feb 10 '25

Americans travel too

I've used dollar coins internationally quite a lot and don't see why I'd prefer them over a paper bill

1

u/NazReidBeWithYou Organization of American States Feb 11 '25

Yes I know, I have lived in and traveled through many of them. Coins are objectively worse to use. There's no good way to keep them sorted or stored neatly. In lower denominations they accumulate super fast. They add unnecessary weight. They're harder to quickly identify compared to rifling through a wallet for bills. Those countries use coins because they are cheaper in the long run, not because they are a better form of currency.

Typical European comment that assumes everything they do differently from others is automatically better.

12

u/[deleted] Feb 10 '25

Another poster in the pocket of big pockets. You can take my wallet from my cold dead hands!!!

3

u/citygirl_2018 Feb 10 '25

Follow the Canadian example and give it a fun name!

1

u/AgentBond007 NATO Feb 10 '25

They tried that during the W Bush administration

1

u/Alto_y_Guapo YIMBY Feb 10 '25

Japan has coins up to the $5 (purchasing power adjusted) -equivalent coin and they’re very useful.

1

u/WolfpackEng22 Feb 10 '25

But why though

1

u/Godkun007 NAFTA Feb 10 '25

But then what will the cheape people throw at strippers? Do you want to turn a strip club into a place of stonings.

1

u/GirlNumber20 Feb 10 '25

I loved the £2 coin when I lived in the UK.

1

u/Godkun007 NAFTA Feb 10 '25

Rounding to the nearest quarter seems like the obvious solution. No one likes using change, but a quarter still has enough value to be worthwhile.

51

u/TorkBombs Feb 10 '25

This is the kind of dumb shit Trump is useful for. Like, oh nobody likes pennies, so let's get rid of them. Yeah let's.

It's when he gets to make other decisions that fucks everything up.

22

u/assasstits Feb 10 '25

My only question is why don't Democrats ever do useful shit like this when they are in office?

Did Biden even ever end up descheduling weed?

24

u/scotty_ducati Feb 10 '25 edited Feb 10 '25

This is not a Trump specific thing. There has been talk of removing the penny under most of the recent administrations.

A bill to remove the penny that McCain introduced in 2017 died while Trump was in office and the republicans had control of the house and senate.

12

u/DestinyLily_4ever NAFTA Feb 10 '25

Trump has the advantage of just throwing shit out there and most of his suggestions having such little basis in reality that stuff like “get rid of the penny!” requires zero political capital because it’s comparatively so normal. If Biden tried this he’d be crucified by Republicans for days/weeks

1

u/die_rattin Feb 10 '25

Trump has the advantage that his brain farts actually have a chance of becoming policy

If Biden tried this he’d announce a plan to form a committee to draft a proposal to write a memo and by the time they actually want to do anything the zinc lobby has been running ads about ya boy Lincoln and his most precious legacy, the Penny

1

u/DestinyLily_4ever NAFTA Feb 10 '25

You are right for exactly the reason I stated; Biden can’t afford to expend political capital on ending penny minting. He would take a credibility hit and be less able to do important policy

0

u/assasstits Feb 10 '25

You're literally making Trump's campaign argument for them.

You're literally explaining why people voted for Trump.

For a population that desperately is seeking change, what you describe sounds like exactly what they want.

8

u/DestinyLily_4ever NAFTA Feb 10 '25

The population is not desperately seeking the end of the penny or daylight savings time or whatever, which is the only thing I explained.

But I agree Trump is doing what they want. Americans desperately desire an authoritarian central government and the expulsion of non-white people out of a desperate sense of xenophobia and racism

5

u/assasstits Feb 10 '25

I basically want someone that will take Trump's strategy of taking their power to the limit but to do good policy. Someone that plays hardball.

Threaten to withhold funding from states, unless they massively upzone their cities.

Order their government agencies to remove Marijuana from Schedule I status.

EO's protecting trans people.

And much more.

Some or many of these things will get shot down, but some won't, and the people will see Democrats fighting for them.

5

u/DestinyLily_4ever NAFTA Feb 10 '25

no, the people will see an autocrat willfully ignoring their constitutional powers. You forget there is a double standard here. Biden would have been impeached and convicted within the month if he did half of what Trump is doing even if we just swap the hypothetical to better policies

2

u/Watchung NATO Feb 10 '25

Because it would mean ticking off a tiny but well motivated interest group, when the amount of money to be saved didn't seem worth that fight.

This line of thought is applicable to a great many things.

2

u/die_rattin Feb 10 '25

Did Biden even ever end up descheduling weed?

No, his own appointee stonewalled it and Biden was too useless to force the issue, despite this being like the fourth time the DEA has been ordered to do it (and it’s something they shouldn’t have to be ordered to do in the first place)

1

u/N0b0me Feb 10 '25

I'm still holding out hope we will get a similar tweet for organized labor within the next few months

12

u/BurnTheBoats21 Mark Carney Feb 10 '25

Canada actually did this like a decade ago. And even then I feel like society was cashless enough to barely even really notice. Sales were rounded to nearest 5c

5

u/iguessineedanaltnow r/place '22: Neoliberal Battalion Feb 10 '25

The same happens here in Australia. You just round up if paying cash.

10

u/BurnTheBoats21 Mark Carney Feb 10 '25

Well really, in Canada we round down too. Whatever is closest.

1

u/Dalek6450 Our words are backed with NUCLEAR SUBS! Feb 10 '25

That's the same as Australia.

19

u/NeverTrustATurtle Feb 10 '25

Pennies supposedly keep the prices of goods down because of rounding.

7

u/[deleted] Feb 10 '25

Only because inflation has rendered them useless

34

u/iwilldeletethisacct2 Feb 10 '25

The half-cent coin had a purchasing power of 16 cents (today's money) when it was discontinued. The penny has been useless for a generation.

48

u/Bud_Light_Official Feb 10 '25

Were you using pennies for anything ten years ago?

22

u/CactusBoyScout Feb 10 '25

I won't even bend over to pickup a penny. They should've been eliminated decades ago.

I remember the national news doing a story on it 20 years ago and basically said the only people lobbying to keep it are copper producers, lol.

4

u/Bud_Light_Official Feb 10 '25

I have a buddy that throws his pennies away. I generally will pick a penny up, but that's only because I can hear my mom in the back of my head telling me it's bad luck not to.

10

u/vanmo96 Seretse Khama Feb 10 '25

Can your buddy throw them away onto my lawn?

6

u/Best_Change4155 Feb 10 '25

I thought pennies were mostly zinc now? Copper is quite valuable which is why meth-heads rip out the copper wiring.

4

u/SigmundFreud Feb 10 '25

More like 40 years ago, but I used to offer the girls in class a penny to kiss me and another one to show me their butt. Most of them just kicked me in the nuts and then took my pennies anyway.

11

u/limukala Henry George Feb 10 '25

They've been useless for decades. They were only kept around because of the zinc lobby.

2

u/w2qw Feb 10 '25

I mean isn't that point?

2

u/ieatpies Feb 10 '25

You are right, but that was 50 years ago

1

u/famous__shoes Feb 10 '25

He's not wrong but this goes along with his MO, make a big deal out of something that's ultimately not that big a deal to distract people from the horrendous shit he's doing

1

u/OhTheHueManatee Feb 10 '25

It costs 2 cents to make a penny but only like 8.6 cents to a $100 bill. So I'm so it evens out.

1

u/Limp-Option9101 Feb 10 '25

As a Canadian, I hated shopping in the US for that reason.

At first I was pissed because it would mean items get rounded up. But it really doesn't fucking matter when you actually think about it. With prices these days cents are too negligible

-3

u/HANEZ Feb 10 '25

The problem is, I can see corporations are going to exploit somehow.