In March, the Canadian government ordered their mint to stop production of the Canadian penny. The US Penny is soon to follow.
The Federal Reserve (established in 1913) created a policy of institutionalized inflation. Institutional inflation favors big finance over small main street shop. The 1913 penny had about the same purchasing power of the 2013 dollar. There has been close to a 99% devaluation of the dollar. Basic postage cost a half cent in 1913. Apples were about a penny a pound, etc..
Rather than wating for the mint to discontinue the penny, I think Main Street merchants should use the devaluation of the penny as an opportunity to show displeasure with a financial system that favors big finance over the people.
On the site RoundDown.US, I advocate that businesses keep only quarters in the change draw and start rounding cash transactions down to the nearest quarter.
If the bill is $12.34 and the patron gives a $20.00; the merchant would give $7.75 in change. Rounding down means the merchant absorbs the cost of rounding.
Rounding down costs an average of 12 cents a transaction. This is lower than the credit card fee.
This technique is really easy. All you have is quarters; so your clerks will give out zero, one, two or three quarters.
Rounding down to the dollar is even easier. To round to the dollar, the clerk has only paper currency. You simply count out the dollar amount. Rounding down to the dollar would cost an average of fifty cents per transaction.
The Federal Reserve has devalued pennies and nickels to the point they cost more to produce than their face value.
The United States will follow Canada's lead and discontinue these coins in the near future.
Merchants can wait for the government to force a change or be proactive and just start making the change on their own.
Customers will appreciate being freed of hassles of small change.
Being proactive and rounding down before the mint's actions will allow Main Street merchants to stand with their customers and say express displeasure with financial policies that favor large institutions over small See RoundDown.us .
