Originally posted by JS357 It occurs to me that this issue is directly related to inflation, at least, I remember 5 cent chocolate bars. Future (US and similarly denominated) generations will talk about getting rid of the quarter, the half-dollar (who sees them now?) the dollar, etc. Are there any viable alternatives or at least, ways to slow the process? Or is it just fine?
Thatcher's government here made tackling inflation a main priority. In doing so, it pursued policies which were conducive to high unemployment. High inflation may actually be an acceptable price to pay for full or near-full employment. At least that way the pain is shared.
Inflation allows people to get pay rises and earn interest on their savings without it actually costing anyone anything. Hard luck if you're on a fixed income though, most of the people who save for retirement won't have nearly as much as they expect, simply because what they've saved isn't worth as much as it was when they saved it.
Our $1 and $2 are now coins, and the $2 is the smaller of the two - who dreamed up that one?
The whole system is antiquated. We have the technology today to become a cashless society, with all monetary events taking place electronically only. After all, the coinage and currency are really only a representative medium at best, since our money is not based on anything real. No physical money means no robberies of convenience stores, liquor stores, persons, saves the cost of minting/printing the money, saves the cost of making change and associated bank transactions, and makes it impossible for the drug trade to profit without taxes being siphoned off. The reality of it is that we are almost there already. Why not become efficient?
Originally posted by Kewpie Inflation allows people to get pay rises and earn interest on their savings without it actually costing anyone anything. Hard luck if you're on a fixed income though, most of the people who save for retirement won't have nearly as much as they expect, simply because what they've saved isn't worth as much as it was when they saved it.
Our $1 and $2 are now coins, and the $2 is the smaller of the two - who dreamed up that one?
I dont know who dreamed that one up mate but for me, as a busker and street walker, the 2 dollar coins have been a boon for my "business" .
Interestingly the two dollar coins dont make the same sound as all the other coins when dropped. So if you drop on it often sounds like a rock or something other than a coin. ( it doesn't have that "ting" sound).
so they are also easy to find 😉
Originally posted by CLL53 The whole system is antiquated. We have the technology today to become a cashless society, with all monetary events taking place electronically only. After all, the coinage and currency are really only a representative medium at best, since our money is not based on anything real. No physical money means no robberies of convenience stores, liquor stores, pe ...[text shortened]... siphoned off. The reality of it is that we are almost there already. Why not become efficient?
I disagree. A cashless society would be the ultimate victory for globalization. Currencies keep things more localized. And if various locales start printing 'local currency' then it keeps money flowing within the local economy even more. So I want the opposite from you. Not only do I not want currency to be eliminated, but I want every area and region to have their own local currency.
Originally posted by rwingett I disagree. A cashless society would be the ultimate victory for globalization. Currencies keep things more localized. And if various locales start printing 'local currency' then it keeps money flowing within the local economy even more. So I want the opposite from you. Not only do I not want currency to be eliminated, but I want every area and region to have their own local currency.
I agree. I dont trust this cashless society idea yet ...
Originally posted by rwingett I disagree. A cashless society would be the ultimate victory for globalization. Currencies keep things more localized. And if various locales start printing 'local currency' then it keeps money flowing within the local economy even more. So I want the opposite from you. Not only do I not want currency to be eliminated, but I want every area and region to have their own local currency.
This is a non-sequitur, since a cashless society wouldn't necessarily be a currency-less society. Payments in the US could still be denominated in dollars; payments in the UK in sterling. There could still be an exchange rate (which would determine how many pounds are deducted from my bank account in the UK when I swipe my debit card in New York). All that replacing a cash economy with a card economy need alter is the physical tokens we designate as "wealth".
Originally posted by karoly aczel I agree. I dont trust this cashless society idea yet ...
Is the grounds for your lack of trust political or practical?
I must confess to a political qualm. A cashless society does mean that there's a record of every transaction, and that would certainly be a gift to leaders in a totalitarian state.
Originally posted by Teinosuke This is a non-sequitur, since a cashless society wouldn't necessarily be a currency-less society. Payments in the US could still be denominated in dollars; payments in the UK in sterling. There could still be an exchange rate (which would determine how many pounds are deducted from my bank account in the UK when I swipe my debit card in New York). All that ...[text shortened]... cash economy with a card economy need alter is the physical tokens we designate as "wealth".
I like the physical tokens and the fact that they physically have to change hands.
Originally posted by rwingett I disagree. A cashless society would be the ultimate victory for globalization. Currencies keep things more localized. And if various locales start printing 'local currency' then it keeps money flowing within the local economy even more. So I want the opposite from you. Not only do I not want currency to be eliminated, but I want every area and region to have their own local currency.
You only want that because you are selfish and don't wan't to share your wealth. There is no good economic or moral argument for it.
Here in SA we are about to drop the 5c coin having already done away with 1c and 2c. Most shops currently round down (customers favor) to the nearest 5c.
In Zambia we haven't had coins for about 20 years. Also until recently our highest denomination note was worth less than the one pound British coin. I have seen someone go into a bank with a large bag full to the brim with notes - not something one would typically do with dollars. Our smallest denomination notes have 3 zeros and are made of plastic.
Originally posted by twhitehead You only want that because you are selfish and don't wan't to share your wealth. There is no good economic or moral argument for it.
If all economies were localized then everyone would prosper. Everyone across the world. Your wealth wouldn't get siphoned off to enrich plutocrats in western countries as it does now in a globalized market.
It's very interesting to hear of countries that legislated that rounding would reduce some prices.
Else, the cost of everything would increase, the cost of items comprised of multiple parts (e.g. automobiles) would go up more significantly, and in sum, you'd see the single largest rise in the cost of living ever.
So, while its a no-brainer to some, I have my doubts that such legislation could be passed in the United States, and without it I would be opposed to eliminating pennies.
If the life-span of a bill is 18 months as I've heard, the life span of a coin must be decades. Why are the current numbers of news coins produced yearly so high?
Should small coins be withdrawn from circulation?
04 Jul '12 22:52
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