Canada got rid of the penny! What purpose do the small coins serve? They are used in small transactions. The industries have come up with so many smart solutions to not important problems. Why cannot they come up with a good solution to reduce if not get rid of the coins in circulation. If they have any value, that value is dropping daily. The inflation has been very high in US regardless of what the government says. Everyone knows besides what is consumed and thus affordable to the mass population, anything that can go up in value has been climbing charts ceaselessly: Real estate, gold…. Just don't replace it with paper money. That reminds me of Germany before WWII. They money was so inflated, the folks had to carry it in baskets to make actual purchases. There was a photo of this German lady, in a history course book, using the German paper money to light her oven. Don't turn them into paper. It has a bad feeling…
David W. Briggs, a reader from Marion, Ma., writes:
In the article on tips for saving money (Consumer Reports, June '09) entitled "How to squeeze a nickel," one person reports setting aside every $5 bill he gets. What a change inflation has made!
Fifty years ago $5 was worth 5 hours labor at minimum wages. A nickel now will buy what half a cent would buy then. Coins were originally designed to be durable for daily transactions and fragile bills for infrequent large transactions. Now, for many, coins are considered a worthless nuisance. While prices at x.99 cents and with sales tax making a total price in odd cents, it is easier to use a credit card. There has been talk of eliminating the penny and the dime.
Perhaps Consumer Reports might review whether it would be in the consumer's interest to have a complete revision of our obsolescent currency.
Should coins be eliminated? What do you think?