Friday, May 17, 2013
Issues with the Anti-Penny arguments - Part 2
It's interesting that in one of the main arguments against the penny, the haters state that "we've done this before" or "other countries have done this before" all with little or no affect on transactions or the economy, etc. I find this to be a bit of a stretch. Converting registers, accounting systems and other purchase tracking software will be a major expense to businesses, and there will be a learning curve to get through, along with fighting off all the penny lovers, etc. I happened to be in Australia in 1992 when they first changed over to a rounding system, and I can tell you that I heard a lot more complaints than praises. Even in 1994 when I was there, I still heard a few derogatory comments about no 1 and 2 cent coins. While I was there, the exchange rate was about AUS$1.20 per US$1.00 if I remember correctly. Now it's nearly a 1 to 1 exchange. And yes, I know exchange rates have little to do with purchasing power, or the strength of a currency within its own economy, but at least it gives us a starting point. I'm sure that things are just fine there now, but at the time it was a big deal to a lot of Australians. Now Canada is going through the same thing. I'd like some feedback from Canadian business owners on transition costs and other headaches they're running into with this. I can't believe it's going off without a hitch.
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