First off, a big thanks to Mr. Cheap at Financial Security Quest for helping me get the Canadian flag into the header, as well as Canadian Capitalist for providing the .gif file.
On with the post!
This article from the Globe & Mail talks about a recently released Bank of Canada study recommends getting rid of the lowly penny which I couldn’t agree with more. The study determined that the penny isn’t necessary when the average day’s net pay reached $100 which is in accordance with a model created in Britain based on the relationship between the average day’s net pay and a currency’s denomination structure.
Interestingly enough the Department of Finance said there is still significant demand for pennies but an internal memo indicates that this “demand” is really the effect of people hoarding the pennies and fewer are recirculated.
Personally I can’t stand using pennies because they are so useless and time consuming. I always end up with jars and jars of them and have to spend all kinds of time rolling them. Does anybody really care if milk cost $4.99 vs $5.00? Also a report by Desjardins Group says that pennies are costing Canada at least $130 million per year.
Australia, New Zealand, France, Norway and Britain have all eliminated their lowest denomination coins so it can be done. I’m sure there are people who want to keep the penny around for sentimental reasons or possibly because they like holding up the grocery store line while they search around their giant purse for that last penny, but I think it should go. And while we’re cleaning house, maybe the nickel can be tossed out as well.
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