Save Those Pennies!
June 2, 2011 § Leave a comment
The United States and Canada are considering removing the penny from circulation and the CBC tells us that “Australia and New Zealand removed their one- and two-cent coins in the early 1990s. New Zealand went a step further in 2006 and demonetized the five-cent piece, and Australia appears ready to follow suit.” Eventually the most important aspect regarding this issue is mentioned almost in passing and without really explaining its significance.
One Canadian cent in 1870 had the same purchasing power as 27 cents in 2005. Since then the purchasing power of money has gone down all over the world. Because of this, it is then necessary to withdraw the penny and maybe even the nickel from circulation. It simply costs too much money to mint all these coins that people don’t use.
Well now wait a minute. What caused all this inflation? Isn’t the declining value of the penny or our currency in general simply a symptom? What is the cause? The cause is governments printing, borrowing, and taxing their way year in and year out. The current fiat currency
standard is the source of our inflation. It’s a hidden tax that is detrimental to our well being and prosperity so why do we get rid of that? If we do, the penny suddenly becomes useful and people will actually start picking them up off the street.
This is a great example of where everyone ignores the root cause(s) of a given problem and they go along with what will seemingly fix the problem when in fact the underlying issues are all still there. The uselessness of the penny is an unseen consequence of inflation; everyone is pointing to the visible effects.
All this said, here is a reason to literally save pennies: they’re made of copper! Copper has, and will continue to increase in value so even if you don’t love them save them anyways. The older ones (as opposed to the newer ones that are made of zinc) are worth 3 or 4 times their face value.
A penny saved will be a penny earned!