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Thread: US Penny

  1. #1
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    US Penny

    For a real example of inflation, the US Penny (1˘) now costs 1.2˘ to produce.
    US pennies may, like penny stocks, be a thing of the past:

    http://www.latimes.com/news/nationwo...tion-headlines
    These are my principles. If you don't like them I have others. ~Groucho Marx~

  2. #2
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    They could of course cut the pennies size in half, make it smaller then the dime, to account for the fact that the penny's copper content makes it worth more melted down then as a penny.
    Admittedly, the concept of the Straussian text is one susceptible to intellectual mischief in the form of wild claims about the esoteric meaning of texts, not to mention rather off-putting for anyone who doesn’t like know-it-all elites.
    Orthodox Judaism, not to mention other religions: there is a small number of men who know the detailed truth; the masses are told what they need to know and no more

  3. #3
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    Quote Originally Posted by georged
    For a real example of inflation, the US Penny (1˘) now costs 1.2˘ to produce.
    US pennies may, like penny stocks, be a thing of the past:

    http://www.latimes.com/news/nationwo...tion-headlines
    So you mean if I walked into the bank, asked for say $1,000 in pennies, melted them down and sold them, I could make $200 profit? Sounds good to me
    "You know the world is going crazy when the best rapper is a white guy, the best golfer is a black guy, the tallest guy in the NBA is Chinese, the Swiss hold the America's Cup, France is accusing the U.S. of arrogance, Germany doesn't want to go to war, and the three most powerful men in America are named Bush, Dick, and Colon. Need I say more?" - Chris Rock

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    Quote Originally Posted by zachvac
    So you mean if I walked into the bank, asked for say $1,000 in pennies, melted them down and sold them, I could make $200 profit? Sounds good to me

    no, you woudl still loose money because that 1.2 cents includes stamping costs. You could not recover the stamping costs, though you would have to pay melting costs.
    If ye love wealth greater than liberty, the tranquility of servitude greater than the animating contest for freedom, go home from us in peace. We seek not your counsel, nor your arms. Crouch down and lick the hand that feeds you; May your chains set lightly upon you, and may posterity forget that ye were our countrymen. —Samuel Adams

  5. #5
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    Quote Originally Posted by daewoo
    no, you woudl still loose money because that 1.2 cents includes stamping costs. You could not recover the stamping costs, though you would have to pay melting costs.
    you mean stamping as in the pattern on the penny? (Lincoln memorial for tails, guy's head for heads). If that's the case maybe they should use a simpler stamping pattern. I mean it's not like counterfitting is a problem as it is with 20 dollar bills. Banks will accept rolls of pennies without examining the pattern on each coin.
    "You know the world is going crazy when the best rapper is a white guy, the best golfer is a black guy, the tallest guy in the NBA is Chinese, the Swiss hold the America's Cup, France is accusing the U.S. of arrogance, Germany doesn't want to go to war, and the three most powerful men in America are named Bush, Dick, and Colon. Need I say more?" - Chris Rock

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    Quote Originally Posted by zachvac
    you mean stamping as in the pattern on the penny? (Lincoln memorial for tails, guy's head for heads). If that's the case maybe they should use a simpler stamping pattern. I mean it's not like counterfitting is a problem as it is with 20 dollar bills. Banks will accept rolls of pennies without examining the pattern on each coin.
    Those are single die patters, so you only need one die per side regardless.

    BUT, you have to have a building. You have to have stamping presses. You haev to have bar handling equipment, quenching tanks, cut offs, die handlers, conveyors, bar cutters. Witht he building comes utilities, manitenance, HVAC, regulatory costs. Then you have to have people to run that XXXX, and since they are government employees, they don't come cheap. In addition to their wages, you have to pay pension fund contributions, health care, COLAs, liability insurance, workmans comp allotments (even though the government is self insured, you still have to pay in an allotment per man hour), SS taxes. Then there are regualtory and HS costs for the employees.

    All that goes into overhead as part of the cost of producing those pennies. Even if they simplified the pattern, their costs would remain static, though they may save a one time cost on the dies if they were simpler. I think that the dies are made in house, so they probably would not save much, since, being government employees, those die makers have job security whether they are making penny dies or drinking coffee in the break room.
    If ye love wealth greater than liberty, the tranquility of servitude greater than the animating contest for freedom, go home from us in peace. We seek not your counsel, nor your arms. Crouch down and lick the hand that feeds you; May your chains set lightly upon you, and may posterity forget that ye were our countrymen. —Samuel Adams

  7. #7
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    Quote Originally Posted by daewoo
    Those are single die patters, so you only need one die per side regardless.

    BUT, you have to have a building. You have to have stamping presses. You haev to have bar handling equipment, quenching tanks, cut offs, die handlers, conveyors, bar cutters. Witht he building comes utilities, manitenance, HVAC, regulatory costs. Then you have to have people to run that XXXX, and since they are government employees, they don't come cheap. In addition to their wages, you have to pay pension fund contributions, health care, COLAs, liability insurance, workmans comp allotments (even though the government is self insured, you still have to pay in an allotment per man hour), SS taxes. Then there are regualtory and HS costs for the employees.

    All that goes into overhead as part of the cost of producing those pennies. Even if they simplified the pattern, their costs would remain static, though they may save a one time cost on the dies if they were simpler. I think that the dies are made in house, so they probably would not save much, since, being government employees, those die makers have job security whether they are making penny dies or drinking coffee in the break room.
    Makes sense. That would be an interesting job. I make pennies. How about this? They could pay them in pennies, like maybe 50% of what they make. That way they would be encouraged to work hard
    "You know the world is going crazy when the best rapper is a white guy, the best golfer is a black guy, the tallest guy in the NBA is Chinese, the Swiss hold the America's Cup, France is accusing the U.S. of arrogance, Germany doesn't want to go to war, and the three most powerful men in America are named Bush, Dick, and Colon. Need I say more?" - Chris Rock

  8. #8
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    but seriously how about saying the amount of copper with dimensions of the penny now is hereby declared to be one cent. Use exaxctly 1 cent's worth of copper.
    "You know the world is going crazy when the best rapper is a white guy, the best golfer is a black guy, the tallest guy in the NBA is Chinese, the Swiss hold the America's Cup, France is accusing the U.S. of arrogance, Germany doesn't want to go to war, and the three most powerful men in America are named Bush, Dick, and Colon. Need I say more?" - Chris Rock

  9. #9
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    Quote Originally Posted by zachvac
    Makes sense. That would be an interesting job. I make pennies. How about this? They could pay them in pennies, like maybe 50% of what they make. That way they would be encouraged to work hard
    That wouldn't work. Nobody would be willing to make pennies. Everybody would want to be on the $100 line
    If ye love wealth greater than liberty, the tranquility of servitude greater than the animating contest for freedom, go home from us in peace. We seek not your counsel, nor your arms. Crouch down and lick the hand that feeds you; May your chains set lightly upon you, and may posterity forget that ye were our countrymen. —Samuel Adams

  10. #10
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    Quote Originally Posted by zachvac
    but seriously how about saying the amount of copper with dimensions of the penny now is hereby declared to be one cent. Use exaxctly 1 cent's worth of copper.

    thats been done in the past. In fact, the only reason they started stamping coins (and this was thousands of years ago) was to gaurantee the purity of the base metal used.
    If ye love wealth greater than liberty, the tranquility of servitude greater than the animating contest for freedom, go home from us in peace. We seek not your counsel, nor your arms. Crouch down and lick the hand that feeds you; May your chains set lightly upon you, and may posterity forget that ye were our countrymen. —Samuel Adams

  11. #11
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    Dump the penny!!!
    Truth gains more even by the errors of one who, with due study and preparation, thinks for himself, than by the true opinions of those who only hold them because they do not suffer themselves to think.
    -John Stuart Mill

  12. #12
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    Quote Originally Posted by Master_Shake
    Dump the penny!!!
    Price exchanges in 5˘ increments? The way the dollar is headed maybe we should eliminate all coin increments?
    These are my principles. If you don't like them I have others. ~Groucho Marx~

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    If it's a long term problem they'll probably do what the Romans did and all European countries do. Make smaller coins.
    Why pray when you can Google?

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    Quote Originally Posted by Ripskar
    If it's a long term problem they'll probably do what the Romans did and all European countries do. Make smaller coins.
    Due to inflation the US Penny is no longer considered a convenient, expedient method of exchange. Mexico's Centavo, 100 to the Mexican Peso, has almost become a collector item for lack of demand as most exchanges now round off to the five centavo mark. I'd say dump the penny.
    These are my principles. If you don't like them I have others. ~Groucho Marx~

  15. #15
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    A couple of Euro countries are also phasing out the €0.01 and €0.02 coins

    I don't miss them. thats less dead weight in my wallet.
    Life may not be exactly pleasant, but it is at least not dull. Heave yourself into Hell today, and you may miss, tomorrow or next day, another Scopes trial, or another War to End War, or perchance a rich and buxom widow with all her first husband's clothes. There are always more Hardings hatching. I advocate hanging on as long as possible.
    H. L. Mencken

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