Pennies and nickels
Posted: February 3, 2017
In The U.S. we face the same problem; namely, the cost to mint pennies and nickels that exceed their value. I have numbers complaints, but the U.S. government should sweeten the pot. Namely, the government should declare that pennies and nickels are now worth 10c each. We can't buy any able body to find something available for a nickel Based on the average life of a penny, there are approximately (if they were increased to 10c each).
There were be a surge in consumer spending, particularly among lower income groups, which would be every household that has a cookie jar with change in it. And, if the collector with 1,000,000 pennies suddenly decides to sell his wares, so be it. Chances are the collector will spend some of that $90,000 profit.
In addition, retailers might have to hire more persons to change all of their prices to multiples of 10. Absent being forced to round them up to 10. No more $2.99 per gallon at the service stations While that is happening, banks and would have to count coins. Banks and currency exchanges would be allowed to charge 1 percent of the gross the convert to convenience store retailers and would realize increased profits based on their current inventory of coins. This also might result in increased efficiency.
There would also be increased efficiency for those retail customers who wait, sometimes patiently, while people look at their pockets or purses for a penny. There would also be increased efficiency at the store because the check person would not have to wait to have the person find a penny.
There would be a significant savings to the government because there would be not further need to mint the proposition This would reduce the federal deficit by more than $1 billion over the next 10 years. (Source: U.S. Mint)
The country of India recently tried something but, instead of assigning value to the discontinued currency, disaster followed.
Finally, unlike any of the recent stimulus programs, there would be no cost to the taxpayer and it would be something that would create value.