James Poulos says we should keep the penny and kill the nickel, followed by giving the penny a promotion so that it's worth five cents. He makes a pretty persuasive case. Note that this would also be an expansionary monetary policy measure that, given the current situation, might be more effective than further interest rate cuts from the Fed.
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Five and Dime
26 Mar 2008 05:26 pm
Comments (14)
If this has even a shred of a chance of happening, I will take out as much credit as humanly possible to acquire pennies by the truckload. And so will millions of other people. It will be madness.
What's the rare penny (1909 C?) worth upwards of 7 figures? I'm always picking 'em up in hopes of cashing in. Anybody know?
Heck, go all the way and make the penny worth 10ยข, dropping both the nickel and dime.
Or just drop the penny and nickel.
If you do this right, it could also have a salutary effect on state budgets, because the need to have pennies to hand often comes from the goofy number you get as a result of adding 4% or 6% to the cost of whatever you bought. Rounding each transaction up to the even nickel or dime (and adding the extra cents to state sales tax revenues) could benefit state budgets.
Just re-evaluate the currency by dividing current prices, debts, wages, etc. by 10. Or even 20. Cokes cost 5 cents when prices were rational.
As I posted in the previous penny-talk comments thread, Obama's economic advisor floated exactly this plan in the New York Times. I'm too lazy to post the link again, though, so this time you'll have to find it yourself.
Well, yeah, that may be a clever enough idea. But man what an insufferable gasbag that dude is. Even a short post like that one is unbearable. Reading some of his longer ones is like chewing on tinfoil.
One more important way that the nickel is far worse than the penny -- its size is disproportionately large for its value. I can cram my wallet's coin pouch full of doubly precious dimes without even noticing. But get even 50 cents worth of nickels in there, and it's a disaster of Costanza-esque proportions.
Nickels are the SUVs of American coinage - huge, ugly, and inefficient.
the nickel has some nice heft. Maybe with a wider diameter, it could become our equivalent of the much-beloved, north-of-the-border "Two-nie."
I am all for the Sacajawea dollars, incidentally.
One more important way that the nickel is far worse than the penny -- its size is disproportionately large for its value.
Wrong. The dime is too small for its value.
If I... yeah, bear with me... if I had control over the currency, the following changes would be made:
1) Penny - stays
2) Nickel - stays
3) Dime - gone.
4) Quarter - stays
5) Half-Dollar - gone (already out, but there are still some in circulation).
6) Dollar (coin) - bring back the big Eisenhower.
7) Dollar (bill) - gone.
8) $2 bill - gone.
9) $5 bill - stays
10) $10 bill - gone.
11) $20 bill - stays.
12) $50 bill - gone.
13) $100 bill - stays.
Take our mix from 6 coins and 7 bills down to only 4 coins and 3 bills, each with a multiplier of either 4 or 5 to get to the next higher denomination. Give the dollar coin some bulk, once again. And, fergoshsakes, can it with the boutique printings.
It probably wouldn't be expansionary, as people would hoard pennies until the measure passed Congress.
Ah yes, reminds me of redenominating banknotes back in the good old Weimar days . . . Good times!
Comments closed April 09, 2008.
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Heads in the Sand
As I glance over at the pint glass full of pennies on my desk, I have to say I think this is a fine idea.
Posted by Tom Hilton | March 26, 2008 5:54 PM