Just Not Worth It

by Joey Tung

As of February 4th, 2013, there will be no more pennies. The federal government has finally decided that it is not worth it to make any more pennies. The current cost of production for the coin exceeds its actual worth with it taking $0.016 to make every penny.

It is reported that in 2006, making pennies has costs Canada $150 million.

So how will this affect consumers?

Prices almost never ring up to end in 0’s or 5’s, so how will consumers pay for an item that costs $4.26? The government proposes that businesses either round up the price or round down. Prices ending in 1,2,6 or 7 will be rounded down while those ending in 3,4,8, or 9 will be rounded up. On paper, this sounds like a good system.

But for some people, every cent counts. Does the government assume that consumers will be willing to pay the extra few cents? Of course, a few cents is a minute amount of money, but in the end, it all adds up. Cents become a dollar. Many cents become dollars.

For me, this is not a dramatic change. Sure there will be changes in the economy but I believe it will be minimal. It will, however, be interesting to see the reaction for those who are skating close to the poverty line.

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