> > I often hear people railing against pennies. They're useless, people say, and we should just get rid of them. I agree, but I think we should take it a step further: get rid of all coins.
>
>
> I'll agree, if you promise to get rid of two other things too:
>
> --the psychological trap door that generates the $0.99 price point: I won't buy it at $5.00 but can't pass up that $4.99 bargain. Retailers just wouldn't know what to do without it. And it would be even worse for those poor Walmart executives. Without that eleven cent advantage $.88 pricing, how could they continue to undercut the competition and drive out all the traditional mom & pop stores? Tsk tsk.
>
> --sales tax. Most states *do* figuratively collect that penny off the sidewalk. Think they'll round *down* to the nearest dollar if coins are abolished? No. And then my bargain $0.99 widget ($1.08 with tax where I live) becomes a $1.00 widget + $1.00 tax which = no bargain, and then I wouldn't buy it at that price, nor would anyone else, and --poof! there goes the economy.
>
> koala"embrace change!" mom

Of course, these problems could be side-stepped if bills going down to 1 cent were introduced. Or you could get rid of coins and notes completely, and pay for everything with credit or debit cards.

wintermute