Senate finance committee wants to kill penny

Finance committee recommends removing the coin

The Senate finance committee is expected to recommend on Tuesday that Ottawa abandon the penny. According to the Canadian Press’ sources inside the committee, it’s been agreed that a century of inflation has made the coin useless. (Since 1908, the coin has lost 95 per cent of its purchasing power, reports the Bank of Canada). Moreover, it now costs more to produce the penny—1.5 cents each—than it’s worth. The Bank of Canada’s research shows eliminating the penny would have a negligible impact on the economy. “On some transactions, the merchant loses and the consumer wins; on some, the merchant wins and the consumer loses,” Pierre Duguay, the bank’s deputy governor, told the Senate finance committee last spring. “However, on balance it evens out.”

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Senate finance committee wants to kill penny

  1. Killing the penny would save the consumer nothing .The merchant would always go high end on any fractional cost.The Xmas charities that depend on a lot of pennies would be doomed.In my town alone one newspaper runs a penny drive and receives thousands of dollars for those less fortunate.My wife and me save our pennies all year long to contribute.Those over paid under worked big expense account senators do not seem to worry about the cost of operating that useless chamber.So why worry about the cost of producing a penny.Go back to sleep you are too annoying when you wake up

    • Hey gar, instead of 1 000 pennies, you and your wife could give a single $10 bill. It's much, much easier to transport and count. Just a thought.

      And as for "killing the penny would save the consumer nothing", yes, that's what negligible means!

    • "The merchant would always go high end on any fractional cost."

      How exactly would they do that? Every 1, 2, 6, 7 would round down and 3, 4, 8,9 would round up. If they make everything end in 3 cents, when you buy 2 items it would end in 6 and round down…it's near impossible to keep track if you're buying a variety of items. For electronic transactions, the penny would still exist…so use your debit or credit card if you're that worried about losing 2 cents.

  2. Was it really necessary for the BoC to conduct research on the impact of eliminating the penny?!

    I've heard that even wishing-wells have stopped accepting them.

  3. The important question here isn't really about whether or not to scrap the penny. It's why the penny is now effectively worthless. The answer is inflation, and the culprit is inflationary tax foisted upon us by central banks backed by governments with a monopoly on counterfeiting.

  4. pre 1996 pennies are copper and they have 2.5 cents worth of copper in them…pre 1982 nickels have 10 cents worth of nickel in them…all due to inflation…pennies and nickels now are steel…not surprised after some bank cornered the copper market the other day. Why not revalue the copper pennies and Nickel nickels to 2.5 cents and 10 cents respectively

    • Because then every transaction involving pennies or nickels would require checking the date on every penny and nickel. The transactions with the old pennies and nickels would really be a barter of commodities rather than a purchase of goods with money.

  5. Will getting rid of the penny give the government free reign to increase costs by the next viable increment in coin, or increase costs by 5% at a time instead of the 1% increments. Don't just look at the cost burden of the penny, and ignore the restraints that it places on other entities like banks and governments hell bent on capitalism ideals rather than cost restraints.

    • Huh?

      I am almost certain government spending increases by more than one cent per annum.

  6. Good riddance.

  7. What about all the energy wasted sorting and hauling these garbage coins to and fro? Is there anything more useless? Once the Obama inflation gets going the debate will centre on getting rid of the looney or keeping it.

  8. The price of a litre of gasoline is in a fraction of a pennie will it or the hidden taxes in that litre be rounded off to a nickel .I think it is just one more way for the government to rip us off

    • Really we should be insisting that the government issue new coins representing 1/10 of one cent. I am so tired of paying a full penny for .6 cents of gasoline!

  9. They've been going to 'eliminate the penny' for the very same reasons, every year I've been alive, so don't hold your breath.

    • Re : Every year I've been alive… And that's a very ,very, long time !….( Sorry Emily, I really, really, tried hard not too ! )…..

  10. Years ago one used to be able to buy penny candy, and now the penny is virtually useless. You can thank the government thieves for that–who printed money and devalued our savings and purchasing power. Copper (in pennies), and silver and gold are actually worth something intrinsically, but they wouldn't let those stand in their way of financing whatever they wanted with the printing presses so they forced us to abandon precious metals as currency. What we need is a system of money that is actually based on something of value–like gold–so that the government does not have the unlimited ability to dwindle our savings away.

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