The recommendation last week from the Senate finance committee that Canada eliminate the pesky penny may seem like a no-brainer when you consider its shrinking value, but getting rid of it is likely to create a bigger problem than the one our un-elected senators are trying to solve.
Earlier this year the committee was charged with investigating the penny's usefulness, because the cost to produce it now exceeds its actual value. During hearings, representatives from the Bank of Canada, industry, consumer groups and charities all told the committee that they wouldn't miss the penny if it were discontinued.
That problem is hoarding. According to the Bank of Canada there are a staggering 20 billion pennies in circulation. Unfortunately the vast majority are sitting in piggy banks, ice cream pails (I've got one of those) and other assorted containers instead of earning their keep.
http://www.calgaryherald.com/business/Killing+penny+makes+little+cents+digital+world/4007089/story.html
No comments:
Post a Comment