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Old 02-09-2019, 11:45 PM   #1
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Old 02-10-2019, 02:16 AM   #2
....How do you turn this damned thing on, again!!!
 
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Still waiting for the penny to be discontinued....i`m guessing its a tax thing.
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Old 02-10-2019, 04:35 AM   #3
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Quote:
Originally Posted by lefty6t
Still waiting for the penny to be discontinued....i`m guessing its a tax thing.


I think its a hard concept for a lot of people to grasp. It's a money loser for the government...but people are concerned they are going to lose a few cents.
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Old 02-10-2019, 08:06 AM   #4
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Quote:
Originally Posted by CabanaBoy
Quote:
Originally Posted by lefty6t
Still waiting for the penny to be discontinued....i`m guessing its a tax thing.


I think its a hard concept for a lot of people to grasp. It's a money loser for the government...but people are concerned they are going to lose a few cents.


2 grand a year is the estimate the average family will lose a year if the penny is eliminated. More than just a few cents.
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Old 02-10-2019, 02:32 PM   #5
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The iPhone one is funny!
My son had Yu-Gi-Oh cards when he was young, so I actually understand this one.

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Old 02-10-2019, 05:19 PM   #6
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Quote:
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Quote:
Originally Posted by CabanaBoy


I think its a hard concept for a lot of people to grasp. It's a money loser for the government...but people are concerned they are going to lose a few cents.


2 grand a year is the estimate the average family will lose a year if the penny is eliminated. More than just a few cents.

Canada has no penny, but prices are still calculated to the penny. If you pay with plastic you pay the exact amount. If you use cash they round up or down to the nearest 5. So 10.00, 10.01 or 10.02 - pay 10.00. 10.03, 10.04, 10.05, 10.06, 10.07 - pay 10.05. Etc. So there's no bias to raise prices. I assume the thing about losing two grand assumes all prices go up to multiples of 5.

And if you are really sneaky, you could pay with cash when it rounds down and plastic if it would round up, coming out ahead or even every time. Personally thats too much effort.
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Old 02-10-2019, 05:36 PM   #7
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I took that the coins were for when you "give a shit" or don't give a fuck
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Old 02-10-2019, 06:52 PM   #8
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Nice coins.
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Old 02-10-2019, 08:35 PM   #9
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Quote:
Originally Posted by pornfan666
Quote:
Originally Posted by 65dart


2 grand a year is the estimate the average family will lose a year if the penny is eliminated. More than just a few cents.

Canada has no penny, but prices are still calculated to the penny. If you pay with plastic you pay the exact amount. If you use cash they round up or down to the nearest 5. So 10.00, 10.01 or 10.02 - pay 10.00. 10.03, 10.04, 10.05, 10.06, 10.07 - pay 10.05. Etc. So there's no bias to raise prices. I assume the thing about losing two grand assumes all prices go up to multiples of 5.

And if you are really sneaky, you could pay with cash when it rounds down and plastic if it would round up, coming out ahead or even every time. Personally thats too much effort.

You mean Canada has something figured out that (some) American's can't wrap their head around?

Sounds like health care...
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Old 02-10-2019, 11:39 PM   #10
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Quote:
Originally Posted by pornfan666
Quote:
Originally Posted by 65dart


2 grand a year is the estimate the average family will lose a year if the penny is eliminated. More than just a few cents.

Canada has no penny, but prices are still calculated to the penny. If you pay with plastic you pay the exact amount. If you use cash they round up or down to the nearest 5. So 10.00, 10.01 or 10.02 - pay 10.00. 10.03, 10.04, 10.05, 10.06, 10.07 - pay 10.05. Etc. So there's no bias to raise prices. I assume the thing about losing two grand assumes all prices go up to multiples of 5.

And if you are really sneaky, you could pay with cash when it rounds down and plastic if it would round up, coming out ahead or even every time. Personally thats too much effort.


The assumption is that everything below the nickel threshold would get rounded up. Raising prices an average of .03 cents. And here is why the bias exist if a company sells 1 million units of a product for 1.02 so it gets rounded down to 1.00 . The company loses 20k on the product. If said companies mark up on product was only 20% the company would break even. The company is not going to risk that at the till the rounding will go in their favor. You also have to factor in poor people that can't get plastic. So they can lose money just by cashing their pay check. Which also leads the government losing money. If every social security recipient cashed their pay check on the low side the government would be at a lose. Which then leads to who is responsible if the banks lose money. Basically the suggestion is that eliminating the penny would lead to mass inflation, meaning every one would lose money. If it were as cut and dry as you suggest it would not be an issue.
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Old 02-10-2019, 11:47 PM   #11
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Quote:
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Quote:
Originally Posted by pornfan666

Canada has no penny, but prices are still calculated to the penny. If you pay with plastic you pay the exact amount. If you use cash they round up or down to the nearest 5. So 10.00, 10.01 or 10.02 - pay 10.00. 10.03, 10.04, 10.05, 10.06, 10.07 - pay 10.05. Etc. So there's no bias to raise prices. I assume the thing about losing two grand assumes all prices go up to multiples of 5.

And if you are really sneaky, you could pay with cash when it rounds down and plastic if it would round up, coming out ahead or even every time. Personally thats too much effort.

You mean Canada has something figured out that (some) American's can't wrap their head around?

Sounds like health care...


Canada did figure something out. That if they left the penny in circulation until their all gone the effect of inflation will be slowed to the point that no one will notice the prices slowly climbing.
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Old 02-12-2019, 03:37 AM   #12
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The penny coins are NOT in circulation any more (I think you can deposit them at banks is all). No payment or change in pennies.
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Old 02-12-2019, 05:12 AM   #13
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The assumption is that everything below the nickel threshold would get rounded up. Raising prices an average of .03 cents. And here is why the bias exist if a company sells 1 million units of a product for 1.02 so it gets rounded down to 1.00 . The company loses 20k on the product. If said companies mark up on product was only 20% the company would break even. The company is not going to risk that at the till the rounding will go in their favor. You also have to factor in poor people that can't get plastic. So they can lose money just by cashing their pay check. Which also leads the government losing money. If every social security recipient cashed their pay check on the low side the government would be at a lose. Which then leads to who is responsible if the banks lose money. Basically the suggestion is that eliminating the penny would lead to mass inflation, meaning every one would lose money. If it were as cut and dry as you suggest it would not be an issue.
It doesn't work that way. Prices don't change. The total bill gets rounded out to the nearest 5 cents, not each individual item. Where you might lose 2 cents one week you'll gain it another week.
Instead of trying to talk specific transactions, talk aggregate purchases.

There would invariably be people trying to take advantage of the system but it's really too much trouble.
I heard of a man who bought some string beans and insisted each bean be weighed and payed for separately. No single bean weighed enough to be worth 3 cents so he got each bean free. He also tied up the register for an hour. The supermarket invoke their right to refuse to serve assholes after that and he had to shop elsewhere.
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Old 02-12-2019, 08:54 AM   #14
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The assumption is that everything below the nickel threshold would get rounded up. Raising prices an average of .03 cents. And here is why the bias exist if a company sells 1 million units of a product for 1.02 so it gets rounded down to 1.00 . The company loses 20k on the product. If said companies mark up on product was only 20% the company would break even. The company is not going to risk that at the till the rounding will go in their favor. You also have to factor in poor people that can't get plastic. So they can lose money just by cashing their pay check. Which also leads the government losing money. If every social security recipient cashed their pay check on the low side the government would be at a lose. Which then leads to who is responsible if the banks lose money. Basically the suggestion is that eliminating the penny would lead to mass inflation, meaning every one would lose money. If it were as cut and dry as you suggest it would not be an issue.
It doesn't work that way. Prices don't change. The total bill gets rounded out to the nearest 5 cents, not each individual item. Where you might lose 2 cents one week you'll gain it another week.
Instead of trying to talk specific transactions, talk aggregate purchases.

There would invariably be people trying to take advantage of the system but it's really too much trouble.
I heard of a man who bought some string beans and insisted each bean be weighed and payed for separately. No single bean weighed enough to be worth 3 cents so he got each bean free. He also tied up the register for an hour. The supermarket invoke their right to refuse to serve assholes after that and he had to shop elsewhere.


Ultimately yes the total bill gets rounded. But the estimates are that many companies will not take the risk of losing on the individual sale.. Then you actually bring up the deeper part of the study where companies will ultimately try to price, so that the end till amount is in their favor. Because it really doesn't matter if it is a million units or a million transactions. A company will try to avoid losing 20k a year.
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