Tuesday, May 14, 2013

Issues with the Anti-Penny arguments - Part 1

OK, let's switch gears to the penny haters.  I hate it when people convert time into a monetary value.  The penny haters say we're wasting 2.5 seconds every time pennies are used in a transaction, then if we do that twice a day, that's 5 seconds, and if the average wage is $17 an hour, 365 days a year...blah, blah, blah...all of a sudden we're losing billions of dollars every year, all because of pennies!  Hello people, I'm not getting paid while I'm shopping, so my time is free. But what about opportunity cost, you ask.  There is an opportunity cost for everything.  But the best example is with a business.  Let's say a company has $50,000 dollars to invest in improving their business.  What should they buy with it?  A new fancy widget to sell? Upgrade their retail facility? Pay their employees more? Open a new location? We could go on and on, but you get the point.  The company's options are limited by the finite resource of cash.  So they analyze each option and estimate how much more money each option will make them in the short- and long-term, etc. and then they go with the option that is best for the company (or makes them the most money).
Similarly, time is a finite resource for each of us.  But it does not have a monetary value for us.  If you want to make money, you'll find out how to make the most money with the time you have. But you'll find that there are certain times that are more productive for you and times that are less productive.  So you'll always be working during peak earning times, and not working as much during the low earning times. There will also be times where you can't make any money at all, no matter what you do, so you don't work at all during those times.
So as for wasting time in the checkout line with the rest of the penny users, hopefully you can gain it back on the drive home by catching all the green lights.  Seriously, 5 seconds is nothing, 10 seconds is nothing. Heck even 10 minutes is nothing.  Come on people, pennies don't waste our time.  And the only way they cost us money is because they're not cost effective for the government to produce.

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