Obama open to the elimination of penny

[Divair]

Half cent, wut?

There was a half cent coin. We got rid of it when it was worthless. Just like the penny. Nothing happened. The world won't end. Nor did it end in Canada, New Zealand, Australia, Sweden, or any of the other countries who got rid of the penny.

[Great Nepal]

It is in the west.

That's not true.

That would be by choice not lack of access.

[The Emerald Dawn]

Companies already artificially price everything.

You think they base it purely on material costs?

Actually, they base it more on labor and research costs.

Just like when we got rid of the half cent coin.


owait

Half cent, wut?

They base it on profit margins and market burden. Trust me, it's artificial.

[Divair]

A better solution would be fighting actively for inflation, and promoting deflation. Simply stopping the production of pennies merely relaxes the pressure to attack inflation directly.

Why the hell would you deflate the USD? Do you even economics?

[Minoriteeburg]

A better solution would be fighting actively for inflation, and promoting deflation. Simply stopping the production of pennies merely relaxes the pressure to attack inflation directly.

Why the hell would you deflate the USD? Do you even economics?

The US Gorvernment doesn't.

[AiliailiA]

I have an idea.


Replace pennies with bottlecaps.

You all are going to think I'm crazy. But I propose getting rid of all change. Round payments to the nearest dollar.

It will even out, long term. $X.00 to $X.49 = $X. $X.50 to $X.99 = $X+1.

It sort of makes sense, in that very few things cost less than 50c. Kinda hard on the kids who just want to buy one sweet with the coin they found on the road though.

Picking up an idea from Paypal (I think?), small payments could be settled by tossing a coin. If I owe you fifty cents, but there are only dollars, we toss a coin for whether I pay you one dollar or I pay you nothing. Using a more sophisticated "coin-toss" it would be possible to settle debts like 33¢ or 57¢ with appropriate odds.

I think your system would work fine for single purchases over $20 or so. But it imposes price stickiness on cheaper items which probably isn't good for competition. The extreme case being when a shop can't make a profit selling a small item for $1, could make a profit selling it for $1.50, and has to compete with a shop down the road selling it for $1. They'd sell more and make more profit selling it for $1.50 than not selling it at all (because they have choose between charging $1 and losing money, or charging $2 and making no sales.) Price stickiness is generally bad for competition is it not?

[YellowApple]

Then lets eliminate cash entirely. Keep the change. In digital form.

Yea, I would support this. Currency is from last century, and digitalisation is the future.

Not to mention that it makes theft much more difficult; if a digital monetary authorization/storage device is lost/stolen (such as a real-life credit/debit card) it's usually pretty straightforward to call the company which issued you the card and have it deactivated.

The problem would be whether or not people keep spare cards/fobs/etc. in order to use them in the meantime, before the replacement arrives. Some newer cell phones are NFC-capable, and they could serve as backups; however, it would be more conceivable for users to use the phones as their primary payment method, and some kind of card or fob as the backup.

[Conscentia]

A better solution would be fighting actively for inflation, and promoting deflation. Simply stopping the production of pennies merely relaxes the pressure to attack inflation directly.

Inflation is the inevitable result of economic growth. Modern economic models favour economic growth.

[Conscentia]

That's not true.

When was the last time you were at a business or government establishment that only took cash?

I don't know, however most day-to-day payments I've witnessed & participated in have been done with cash
The only time I've seen the use of NFC payment systems has been on buses & in London.

[AiliailiA]

Yea, I would support this. Currency is from last century, and digitalisation is the future.

Not to mention that it makes theft much more difficult;

And bribery. And tax evasion.

if a digital monetary authorization/storage device is lost/stolen (such as a real-life credit/debit card) it's usually pretty straightforward to call the company which issued you the card and have it deactivated.

The problem would be whether or not people keep spare cards/fobs/etc. in order to use them in the meantime, before the replacement arrives. Some newer cell phones are NFC-capable, and they could serve as backups; however, it would be more conceivable for users to use the phones as their primary payment method, and some kind of card or fob as the backup.

My enthusiasm for purely electronic cash just took a major hit. I have to carry a damn mobile phone to buy anything? Get out of here!

[Great Nepal]

Yea, I would support this. Currency is from last century, and digitalisation is the future.

Not to mention that it makes theft much more difficult; if a digital monetary authorization/storage device is lost/stolen (such as a real-life credit/debit card) it's usually pretty straightforward to call the company which issued you the card and have it deactivated.

The problem would be whether or not people keep spare cards/fobs/etc. in order to use them in the meantime, before the replacement arrives. Some newer cell phones are NFC-capable, and they could serve as backups; however, it would be more conceivable for users to use the phones as their primary payment method, and some kind of card or fob as the backup.

Yes, something like octopus card system...

[YellowApple]

Not to mention that it makes theft much more difficult;

And bribery. And tax evasion.

Indeed.

if a digital monetary authorization/storage device is lost/stolen (such as a real-life credit/debit card) it's usually pretty straightforward to call the company which issued you the card and have it deactivated.

The problem would be whether or not people keep spare cards/fobs/etc. in order to use them in the meantime, before the replacement arrives. Some newer cell phones are NFC-capable, and they could serve as backups; however, it would be more conceivable for users to use the phones as their primary payment method, and some kind of card or fob as the backup.

My enthusiasm for purely electronic cash just took a major hit. I have to carry a damn mobile phone to buy anything? Get out of here!

I never said you have to carry a mobile phone. I am merely presenting that as an option. NFC-capable fobs/cards/etc. would be just as effective. However, users would certainly be inclined to use the NFC capabilities of their phones out of convenience, rather than necessity.

[Great Nepal]

if a digital monetary authorization/storage device is lost/stolen (such as a real-life credit/debit card) it's usually pretty straightforward to call the company which issued you the card and have it deactivated.

The problem would be whether or not people keep spare cards/fobs/etc. in order to use them in the meantime, before the replacement arrives. Some newer cell phones are NFC-capable, and they could serve as backups; however, it would be more conceivable for users to use the phones as their primary payment method, and some kind of card or fob as the backup.

My enthusiasm for purely electronic cash just took a major hit. I have to carry a damn mobile phone to buy anything? Get out of here!

Wristband, watch, key chains etc are already available. Also, I suppose we could look into getting chip implanted in hand for people who want to...

[Conscentia]

I never said you have to carry a mobile phone. I am merely presenting that as an option. NFC-capable fobs/cards/etc. would be just as effective. However, users would certainly be inclined to use the NFC capabilities of their phones out of convenience, rather than necessity.

A phone is more convenient than a card? Since when?

[Saiwania]

When was the last time you were at a business or government establishment that only took cash?

When was the last time you were at a business or government establishment that didn't take cash? Not everyone has a bank account or credit.

[The Emerald Dawn]

And bribery. And tax evasion.

Indeed.

My enthusiasm for purely electronic cash just took a major hit. I have to carry a damn mobile phone to buy anything? Get out of here!

I never said you have to carry a mobile phone. I am merely presenting that as an option. NFC-capable fobs/cards/etc. would be just as effective. However, users would certainly be inclined to use the NFC capabilities of their phones out of convenience, rather than necessity.

I must be the only person on the planet who uses their phone for calling people.

My phone is only ever used to dial a number. I flip it open, I push the numbers, I talk. I don't "text", I don't "twit", I don't "book the face". I don't even use the fucking calculator on it.

It is a phone. I call on the phone.

[Great Nepal]

When was the last time you were at a business or government establishment that only took cash?

When was the last time you were at a business or government establishment that didn't take cash? Not everyone has a bank account or credit.

Everyone in western world has ability to have bank account.

[Minoriteeburg]

When was the last time you were at a business or government establishment that didn't take cash? Not everyone has a bank account or credit.

Everyone in western world has ability to have bank account.

This. All you need is a dollar anymore to open an account.

[Conscentia]

When was the last time you were at a business or government establishment that didn't take cash? Not everyone has a bank account or credit.

Everyone in western world has ability to have bank account.

Not everyone wants one.
People shouldn't be forced to get one in order to be able to pay for stuff.

[Dyakovo]

I will be happy if it makes them legal to scrap, I probably got $1k in copper from pennies I have.

It won't. They are property of the government.

[Conscentia]

Indeed.



I never said you have to carry a mobile phone. I am merely presenting that as an option. NFC-capable fobs/cards/etc. would be just as effective. However, users would certainly be inclined to use the NFC capabilities of their phones out of convenience, rather than necessity.

I must be the only person on the planet who uses their phone for calling people.

My phone is only ever used to dial a number. I flip it open, I push the numbers, I talk. I don't "text", I don't "twit", I don't "book the face". I don't even use the fucking calculator on it.

It is a phone. I call on the phone.

I only use it for the clock function. The ability to phone people is more of a 'in the event of an emergency' thing.

[YellowApple]

I never said you have to carry a mobile phone. I am merely presenting that as an option. NFC-capable fobs/cards/etc. would be just as effective. However, users would certainly be inclined to use the NFC capabilities of their phones out of convenience, rather than necessity.

A phone is more convenient than a card? Since when?

Since Google Wallet came out and introduced the ability to wave one's phone over a cash register to pay.

Think about it; why carry a wallet and a phone when your phone is capable of using NFC to transmit/authorize a payment and has a screen to display a photo ID and has the computational power and storage capacity to store and replicate a wide variety of barcode-based cards? The only things lacking on a phone are smartcard emulation and magnetic strips, and both of those can be conceivably obsolesced by NFC.

When was the last time you were at a business or government establishment that didn't take cash? Not everyone has a bank account or credit.

Everyone in western world has ability to have bank account.

I use a credit union myself. Doesn't cost me a dime.

Indeed.



I never said you have to carry a mobile phone. I am merely presenting that as an option. NFC-capable fobs/cards/etc. would be just as effective. However, users would certainly be inclined to use the NFC capabilities of their phones out of convenience, rather than necessity.

I must be the only person on the planet who uses their phone for calling people.

My phone is only ever used to dial a number. I flip it open, I push the numbers, I talk. I don't "text", I don't "twit", I don't "book the face". I don't even use the fucking calculator on it.

It is a phone. I call on the phone.

Good for you.

Unfortunately, phone designs have transitioned from simple mobile phones to full-fledged PDA-like devices that happen to have phone capabilities. It's only a matter of time before even "feature" phones have computation capacity and features akin to a low-end smartphone, but packed into a flip-phone form factor.

[Pdiiek]

Obama plans to eliminate currency - what else would you expect from a communist?

[Saiwania]

Not everyone wants one. People shouldn't be forced to get one in order to be able to pay for stuff.

Exactly, does no one give a damn about the people who work under the table or want physical currency for convenience when tipping and making small transactions?

[Conscentia]

A phone is more convenient than a card? Since when?

Since Google Wallet came out and introduced the ability to wave one's phone over a cash register to pay.

Think about it; why carry a wallet and a phone when your phone is capable of using NFC to transmit/authorize a payment and has a screen to display a photo ID and has the computational power and storage capacity to store and replicate a wide variety of barcode-based cards? The only things lacking on a phone are smartcard emulation and magnetic strips, and both of those can be conceivably obsolesced by NFC.

Yeah, my phone can't do any of that stuff.
I prefer dropping some money in the cashier's hand, taking my stuff, and then taking my change.