CGP Grey is a youtuber who made a video years ago about stopping printing the penny. when trump announced ending printing the penny, he made basically the same video about stopping printing the nickel, and the dime.
Due to Inflation.
The same reason that Bernie sanders pushed for a $15/h minimum wage, which should itself be inflated from its 2016 amount to 22 bucks an hour.
While I think both of you are making reasonable arguments, I wanted to make fun of the situation.
Sure, I mean, I’m also all for raising the minimum wage, as it’s wildly stagnated against inflation. You can be for that and for getting rid of the penny?
Idk, I just don’t understand how I’m “moving the goalposts”? Or perhaps I’ve just misunderstood the point of your comment.
I actually have seen that CGP Grey video before though, and it’s only gotten more relevant as time has gone on, lol. It doesn’t make it bad policy just because Trump is the one doing it.
Idk, I just don’t understand how I’m “moving the goalposts”? Or perhaps I’ve just misunderstood the point of your comment.
CGP Grey made the video for “get rid of the penny”. When they got rid of the penny, he made the video “get rid of the nickel, and the dime.” When the original goal as getting rid of the penny, once that was achieved, he moved the goalposts to get rid of the nickel.
Your statement is in line with CGP Grey’s (correct) viewpoint.
Pointing this out in a facetious manner is meant to be humorous.
Probably the same way they handled the halfpenny being removed from circulation. There was no government fiat about it then.
But, luckily, they’ve got 20yrs minimum to figure it out. They’ve just stopped making new pennies. Coins are intended to last 20-30 years. It’s not like they’re going out and stealing everyone’s pennies today.
I doubt it’s a terribly difficult problem for them to solve over the next two to three decades.
half penny was removed by an act of congress so that it is no longer legal tender and was demontenized. The penny is just not being made by an executive order but a penny is still legal currency and banks have to follow laws around that.
A fair point. A better, more modern example is probably the two dollar bill. They’ll just slowly be pulled out of circulation until they’re no longer common.
I’m sure businesses will continue to accept pennies. They’ll just start rounding to 5¢ regardless because they’re uncommon, and if someone brings in 5 pennies, they’ll take them, but eventually the federal reserve will have sucked all but a handful out of circulation.
Its not about bussinesses though. Its banks. They can’t adjust withdrawals the way businesses do prices. The two dollar bill is not a good example because its not the bottom tier currency. Its not a common currency, heck I did not even realize they did not make them anymore but I can totally believe it. Thing is a bank can give someone two singles in the case of withdrawing two dollars. When the half penny was removed by congress you could not ask for anything less than a penny anymore. This is not the case with the fed just not producing the penny. So if I want to withdraw four cents in cash what does the bank do? I meant to mention this before but the lifespan of coinage means nothing if folks are hoarding it which is what is happening with the announcement the fed will just no longer produce it. Law requires the coinage be made as demand dictates and the executive is just saying there is no demand. This is actually increasing demand and banks will have to ask for pennies and likely the fed will just have to start making them again when the supply gets low. Its funny but this action by trump will actually cost the fed because they will end up having to make more pennies that will go into hoards that are worth less than the cost to make.
I hear what you’re saying, but I don’t know that I foresee this as more than a niche issue.
Obviously this is just a gut feeling backed by no data, so it’s worth the paper it’s printed on. But how many pennies were banks giving to non-business customers? I have to believe that it was super negligible.
The vast majority of pennies were issued to businesses to make change. If businesses stop giving out pennies, how many pennies will the banks be asked to hand out?
Time will tell for sure, but my gut is that the amount of people hoarding pennies will be wildly offset by businesses getting rid of them.
And, in your “what if I asked for only 4¢ from the bank” example. The easy solution is that they just give you a nickel and write the penny off as a loss. The penny is just so low value that it wouldn’t add up to an appreciable loss. Again, that’s gut, but the average bank brick-and-mortar does on the order of hundreds or thousands of transactions per day. If they lost 4¢/transaction, that’s only on the order of tens of dollars per day. They lose more to that in miscounts I would imagine.
So they so do not lose money like that in miscounts I guarantee. It would be a massive amount. I don’t know what will happen for sure but without congressional action im sure the banks will petition the fed for more pennies and if the executive still insists there is no demand it will just be another ingnore the law kind of thing.
Fair. We’ll have to see how it plays out. My gut is that the demand probably won’t be there, but we’ll just have to see.
But to be clear, we’re talking about a brick and mortar bank losing between $10-40 a day. Compared to the overall quantity of money moving through it, that feels like it should be negligible. That’s, like, one to two tellers leaving an hour early.
But yeah, the way this should be done is through an act of Congress. Agreed on that. This should really be an easy piece of bipartisan legislation, and the fact that Congress is so broken as to be unable to pass it is a huge indictment in its own right.
The dime is currently worth less than the halfpenny was when it stopped being minted because it wasn’t useful to do so anymore.
This is wildly overdue, and honestly, probably not far enough.
Thanks CGP Grey. You keep moving them goalposts.
Just like how the federal minimum wage needs to be over 22 dollars, not just Fif-Teen bucks an hour </bernie>
…what?
CGP Grey is a youtuber who made a video years ago about stopping printing the penny. when trump announced ending printing the penny, he made basically the same video about stopping printing the nickel, and the dime.
Due to Inflation.
The same reason that Bernie sanders pushed for a $15/h minimum wage, which should itself be inflated from its 2016 amount to 22 bucks an hour.
While I think both of you are making reasonable arguments, I wanted to make fun of the situation.
https://www.youtube.com/watch?v=58SrtQNt4YE < kill nickels
https://www.youtube.com/watch?v=y5UT04p5f7U < Kill pennies
Sure, I mean, I’m also all for raising the minimum wage, as it’s wildly stagnated against inflation. You can be for that and for getting rid of the penny?
Idk, I just don’t understand how I’m “moving the goalposts”? Or perhaps I’ve just misunderstood the point of your comment.
I actually have seen that CGP Grey video before though, and it’s only gotten more relevant as time has gone on, lol. It doesn’t make it bad policy just because Trump is the one doing it.
CGP Grey made the video for “get rid of the penny”. When they got rid of the penny, he made the video “get rid of the nickel, and the dime.” When the original goal as getting rid of the penny, once that was achieved, he moved the goalposts to get rid of the nickel.
Your statement is in line with CGP Grey’s (correct) viewpoint.
Pointing this out in a facetious manner is meant to be humorous.
except im wondering how banks are going to handle this given congress did not act.
Probably the same way they handled the halfpenny being removed from circulation. There was no government fiat about it then.
But, luckily, they’ve got 20yrs minimum to figure it out. They’ve just stopped making new pennies. Coins are intended to last 20-30 years. It’s not like they’re going out and stealing everyone’s pennies today.
I doubt it’s a terribly difficult problem for them to solve over the next two to three decades.
half penny was removed by an act of congress so that it is no longer legal tender and was demontenized. The penny is just not being made by an executive order but a penny is still legal currency and banks have to follow laws around that.
A fair point. A better, more modern example is probably the two dollar bill. They’ll just slowly be pulled out of circulation until they’re no longer common.
I’m sure businesses will continue to accept pennies. They’ll just start rounding to 5¢ regardless because they’re uncommon, and if someone brings in 5 pennies, they’ll take them, but eventually the federal reserve will have sucked all but a handful out of circulation.
Its not about bussinesses though. Its banks. They can’t adjust withdrawals the way businesses do prices. The two dollar bill is not a good example because its not the bottom tier currency. Its not a common currency, heck I did not even realize they did not make them anymore but I can totally believe it. Thing is a bank can give someone two singles in the case of withdrawing two dollars. When the half penny was removed by congress you could not ask for anything less than a penny anymore. This is not the case with the fed just not producing the penny. So if I want to withdraw four cents in cash what does the bank do? I meant to mention this before but the lifespan of coinage means nothing if folks are hoarding it which is what is happening with the announcement the fed will just no longer produce it. Law requires the coinage be made as demand dictates and the executive is just saying there is no demand. This is actually increasing demand and banks will have to ask for pennies and likely the fed will just have to start making them again when the supply gets low. Its funny but this action by trump will actually cost the fed because they will end up having to make more pennies that will go into hoards that are worth less than the cost to make.
I hear what you’re saying, but I don’t know that I foresee this as more than a niche issue.
Obviously this is just a gut feeling backed by no data, so it’s worth the paper it’s printed on. But how many pennies were banks giving to non-business customers? I have to believe that it was super negligible.
The vast majority of pennies were issued to businesses to make change. If businesses stop giving out pennies, how many pennies will the banks be asked to hand out?
Time will tell for sure, but my gut is that the amount of people hoarding pennies will be wildly offset by businesses getting rid of them.
And, in your “what if I asked for only 4¢ from the bank” example. The easy solution is that they just give you a nickel and write the penny off as a loss. The penny is just so low value that it wouldn’t add up to an appreciable loss. Again, that’s gut, but the average bank brick-and-mortar does on the order of hundreds or thousands of transactions per day. If they lost 4¢/transaction, that’s only on the order of tens of dollars per day. They lose more to that in miscounts I would imagine.
So they so do not lose money like that in miscounts I guarantee. It would be a massive amount. I don’t know what will happen for sure but without congressional action im sure the banks will petition the fed for more pennies and if the executive still insists there is no demand it will just be another ingnore the law kind of thing.
Fair. We’ll have to see how it plays out. My gut is that the demand probably won’t be there, but we’ll just have to see.
But to be clear, we’re talking about a brick and mortar bank losing between $10-40 a day. Compared to the overall quantity of money moving through it, that feels like it should be negligible. That’s, like, one to two tellers leaving an hour early.
But yeah, the way this should be done is through an act of Congress. Agreed on that. This should really be an easy piece of bipartisan legislation, and the fact that Congress is so broken as to be unable to pass it is a huge indictment in its own right.