[HN Gopher] Do We Need a 37-Cent Coin? (2009)
       ___________________________________________________________________
        
       Do We Need a 37-Cent Coin? (2009)
        
       Author : jawns
       Score  : 47 points
       Date   : 2024-10-06 12:01 UTC (10 hours ago)
        
 (HTM) web link (freakonomics.com)
 (TXT) w3m dump (freakonomics.com)
        
       | gus_massa wrote:
       | Iportant first comment in the blog:
       | 
       | > _Just to summarize how commenter, Jeffrey Shallit, addresses
       | the (1, 3, 11, 37) solution: this is the best way to use the
       | Greedy algorithm to select coins. However, (1, 5, 18, 25) and (1,
       | 5, 18, 29) are tied for the actual solutions. [...]_
        
       | TZubiri wrote:
       | I thought it was going to be about how there was 3700% inflation
       | since coins were actually a useful concept.
       | 
       | It's probably just better to go for eliminating the cent and the
       | nickel and making a 2.5$ coin.
        
         | SoftTalker wrote:
         | I'd go farther and eliminate all but the quarter.
        
       | im3w1l wrote:
       | It's quite surprising to me how the US still has the penny. Like
       | its value is less than the cost of carrying it around.
        
         | zahlman wrote:
         | Canada gave up on it over a decade ago
         | (https://en.wikipedia.org/wiki/Penny_(Canadian_coin)).
        
           | cduzz wrote:
           | I've said before, I'll say again:
           | 
           | We should have the $0.1 and $0.5 coins and everything should
           | be rounded to that.
           | 
           | There's no reason to have $0.01 or even $0.05 precision. The
           | value of the dollar, these days, has inflated to the point
           | where there's simply no practical difference between $0.01
           | and $0.03 or $0.08 in everyday life, when dealing with cash
           | transactions.
           | 
           | You could certainly track $0.01 in digital account tracking,
           | but the _coin_ is silly.
           | 
           | And -- with payment processing fees, places dealing with cash
           | or card processing would still see less cost in "rounding
           | down" than paying for card processing.
        
             | chgs wrote:
             | Prices in America are wired. Bought a beer yesterday
             | waiting for the train. Claimed it was $7, actual price
             | $7.62 (which Amex coincidently converted to exactly PS6.00)
             | 
             | If I'd paid in cash I'd have to pay with at least a 2 cent
             | coin (and likely need a 1 or 3 in change), despite the nice
             | round number
             | 
             | Until America changes to advertise things at the actual
             | price rather than a partial price, I don't see how getting
             | rid of 1 cent coins works.
        
               | cduzz wrote:
               | It'd cost $7.6 if you pay in cash and $7.62173451123 if
               | you pay via a card?
               | 
               | (and, if I were to pass the "small change" bill, I'd, by
               | fiat, make it so that it'd still be "$7.6" even if it was
               | $7.68 -- and the vendors would _still_ come out ahead
               | because the $0.08 lost from rounding down is much less
               | than the $0.23 in card processing fees that comes with a
               | 3% surcharge from your payment processors.)
        
               | zahlman wrote:
               | Does the UK include VAT in all listed prices? I don't
               | recall it working that way in continental Europe, and it
               | certainly doesn't work that way in Canada with our
               | equivalent (nor in the US, as you discovered).
               | 
               | That said, advertised prices are commonly not "round" in
               | the first place. In Canada, we simply round the figure on
               | the bill when paying cash.
        
               | abanana wrote:
               | Yes, prices advertised to consumers must include VAT. UK
               | advertising laws mandate that the price must include all
               | non-optional taxes, fees, etc. Prices advertised
               | exclusively to businesses can exclude VAT.
        
               | Symbiote wrote:
               | UK and EU law requires advertised prices to include all
               | taxes.
               | 
               | The most common exception is things aimed at business
               | buyers, who won't pay tax -- so the Dell consumer website
               | shows laptops prices including tax, and the business site
               | shows them without, but labelled as such.
               | 
               | It means if I buy for business from a consumer site, and
               | I'm logged in with my business account, I see 'ugly'
               | prices like 5119.20, as the marketing-friendly number of
               | 6,399.00 is chosen including tax.
        
         | analog31 wrote:
         | People are superstitious about math, and fearful that rounding
         | to the nearest nickel, or dime, will result in them getting
         | ripped off. Also, it's an admission that the government has
         | given up on inflation.
         | 
         | This is the country that gave up on the metric system because
         | it involved too much math.
        
           | HPsquared wrote:
           | I'd suspect they rejected the metric system because it would
           | have cost money to change everything over. The argument would
           | presumably have gone something like "we can't have the
           | federal government imposing a cost on the citizens /
           | corporations".
        
             | crazygringo wrote:
             | Exactly. It had nothing to do with "too much math" -- I
             | think everyone appreciates metric uses less math, and we
             | all learn it in school anyways for science classes.
             | 
             | It's the cost of _change_. Replacing every speed limit
             | sign, spending _decades_ where half the cookbooks you own
             | use oven temperatures in degF and half use degC. Years of
             | confusion where someone says they were going 60 and you
             | have to ask if they mean mph or kph.
             | 
             | Not to mention changing the size of every milk container,
             | and so forth...
        
               | ryandrake wrote:
               | I'm not sure I buy that excuse. For packaged goods and so
               | on, you don't have to change any sizes of things. Just
               | pick a date and change to a different package design. So
               | nothing in your factory that produces 1 gallon milk jugs
               | has to change except the graphic design needs to start
               | saying 3.8L Milk instead of 1gal Milk. At that point, you
               | can transition to change the physical size of things
               | whenever it is convenient.
               | 
               | For cars, most of them in the US already show mph and
               | kph, so the switch should be easy. Leave old signs alone,
               | but whenever new signs get built, build them in both
               | units for a few years (65mph / 105kph) allowing you to
               | gradually transition to metric.
               | 
               | Repeat for everything else. You can gradually make the
               | switch. Heck, some products (like soda and bullets) are
               | already in liters and millimeters.
               | 
               | I agree with the OOP. We refuse to even take the first
               | steps to switch because of good ol stereotypical American
               | paranoia: "If we switch to metric, all the companies will
               | use it to make everything smaller and rip us off!" as if
               | shrinkflation wasn't already a thing.
        
               | crazygringo wrote:
               | > _Leave old signs alone, but whenever new signs get
               | built, build them in both units for a few years (65mph /
               | 105kph) allowing you to gradually transition to metric._
               | 
               | Road signs last around a decade. So you're talking 10
               | years to replace with dual-unit signs (which are more
               | confusing) and then another 10 years to replace again
               | with metric-only signs.
               | 
               | Is it worth it? Is it really that important to change
               | driving speeds to metric? What's the benefit?
               | 
               | And how does it help to say "hey can you pick up 3.8L of
               | milk?" If packaging sizes don't change then we'll still
               | call it a gallon and we won't have "converted" at all.
               | 
               | Conversion is a massive, confusing, expensive effort, and
               | it's reasonable to wonder whether it's actually worth it.
        
               | ryandrake wrote:
               | I was thinking 50+50 years, but ok 10+10 years is even
               | better. I mean, if you do it gradually enough, the cost
               | approaches zero, so is it worth "almost zero" to have a
               | standard measurement system across the globe? Maybe?
               | 
               | Nothing stops us from enacting generous legislation
               | mandating the switch to metric by the year 2125 or
               | something. You'd have to have intermediate milestones of
               | course, or everyone would just do nothing and wait until
               | 2124 and then complain endlessly about how the transition
               | is so costly and we can't possibly do it in a year, and
               | so on.
               | 
               | But this is the USA, where we can't seem to do anything
               | that takes longer than a quarter, and our entire
               | country's major priorities change every 4 or 8 years.
        
               | WesolyKubeczek wrote:
               | So if everyone knows everyone will be whining, you could
               | just as well announce the transition tomorrow and get it
               | over with in a year.
               | 
               | As if Americans don't find a reason to whine every bloody
               | day.
        
               | nothrabannosir wrote:
               | > And how does it help to say "hey can you pick up 3.8L
               | of milk?" If packaging sizes don't change then we'll
               | still call it a gallon and we won't have "converted" at
               | all.
               | 
               | I'm with you on everything but this. The imperial system
               | allows retailers (and/or consumer good manufacturers) to
               | take consumers for a giant ride. I have lived in both USA
               | & EU, and in the USA I just give up entirely on comparing
               | goods in a supermarket. With the metric system there's
               | nowhere to hide, and I can compare all products, whether
               | you use ml or l, mg or g or kg. In the USA different
               | manufacturers will use any odd denominator they can come
               | up with and after about two weeks of normalizing
               | fractions every time I went shopping, I gave up.
               | 
               | Even the little tags supermarkets add to try and help
               | you, aren't enough. Many shops use a different
               | denominator, and even a single shop will vary internally.
               | Something as simple as comparing the price of bacon
               | becomes a middle school math problem.
               | 
               | I hate corporate greed, I am partial to pointless mental
               | exercise like math, and I am very stubborn. I don't want
               | to speak for other people but something tells me I'm not
               | the only one who has given up on this battle. Retail
               | customers have more power in the metric system.
               | 
               | For everything else though yes I agree who cares. Except
               | degF which is actually better. :)
        
               | crazygringo wrote:
               | > _The imperial system allows retailers (and /or consumer
               | good manufacturers) to take consumers for a giant ride._
               | 
               | That's a really interesting point. However, ultimately I
               | actually don't think it has anything to do with imperial
               | vs. metric, but just consumer culture.
               | 
               | In Europe, when you order a drink the menu tells you how
               | many centiliters it is. In the US, it's just small-
               | medium-large-XL, which every location defines however
               | they want. And in the US, the difficulty in comparison
               | doesn't have anything to do with imperial units -- it's
               | that one package of tomatoes is defined by volume while
               | another is by weight, and the loose bell peppers are
               | priced per pepper while the packaged ones are priced per
               | weight, and so forth.
               | 
               | Switching to metric wouldn't change any of that.
               | 
               | That's a problem that can seemingly only be addressed by
               | legislation -- e.g. that strawberries and tomatoes must
               | be sold by weight not volume, or that selling produce by
               | the item must also accurately list the average item
               | weight.
        
               | ryandrake wrote:
               | Your post reminds me of the additional problem of "The
               | Serving" which is a unit of measurement entirely conjured
               | up by the food manufacturer to serve as the denominator
               | when listing required nutritional information.
               | 
               | A normal 50g bowl of your sugary breakfast cereal too
               | unhealthy? Just define a "serving" as 20g and cut all
               | your bad numbers by 2/5! Problem solved! Is your bag of
               | chips full of salt? Just invent a "Serving Size" of three
               | chips and you don't have to draw attention to yourself on
               | the nutrition label.
               | 
               | Letting companies define their own units of measurement
               | seems to be a totally preventable regulatory mistake.
        
               | Symbiote wrote:
               | Indeed, it's something the EU prevented. There are
               | regulations on what the standard serving size is, and
               | other regulations specifying how the item must be priced
               | -- so all the milk says "per litre" under the price tag
               | in the supermarket, even the fancy one in a tiny bottle.
               | 
               | There were also preferred size regulations, which was
               | meant to make it even easier. Breand could only be sold
               | in multiples of 400g. I think this was relaxed, but it's
               | still present for some things. A standard bottle of wine
               | is always 75cL, for example.
        
               | NeoTar wrote:
               | There UK still used miles per hour for speed limits, and
               | I've debated how we may change with my partner.
               | 
               | I think the battle here is now lost - if you want to use
               | km/h a sufficiently advanced modern car will show you the
               | current speed limit and convert from imperial to metric
               | for you. In the ten-to-twenty years a full change would
               | take to complete we'll proabably have cars which are
               | close to self driving, so who cares what value they use
               | for speed limits?
               | 
               | But for everything else - please do look to the UK as an
               | example. We converted in the 1970s and it's still a bit
               | messy today, but it's mostly worked.
               | 
               | Beer at a pub/bar is mostly sold in pints, but to sell in
               | litres is legal. Bottles of beer are often 330 or 500 ml.
               | Wine is sold in millilitres, as are spirits.
               | 
               | Basic milk is in pint sized containers (sizes in litres
               | are shown). 'Fancy' milk is often sold directly in
               | litres.
               | 
               | You get the occasional container which is a weird size -
               | like golden syrup is still sold in a 454g (1 lb)
               | container.
               | 
               | Ovens can be dual calibrated, and English language
               | recipes often already will give both metric and imperial
               | units for readers in the UK, AU, NZ, CA, etc.
               | 
               | When cooking - if I find an American recipe with
               | unconverted values I will just use Google ("what's 6oz in
               | grams?'), etc. In fact a bigger problem for me is that
               | American recipes tend to use volumetric units (e.g. 4
               | cups of flour) where I'm used to weight (e.g. 500g of
               | sugar).
        
               | bigstrat2003 wrote:
               | It's the cost of change, and also the fact that the
               | people you need to convince to switch _don 't benefit_.
               | If you're an adult in the US, you already know the
               | conversions you need to do everyday tasks (e.g. 12 inches
               | to a foot, etc). You also have calculators absolutely
               | everywhere to do the math for you, so it isn't like you
               | benefit from being able to do it in your head more
               | easily. So, if we switched to metric most of the country
               | would have to incur significant costs, and reap no
               | benefits. That's never going to fly.
        
             | FactKnower69 wrote:
             | >"we can't have the federal government imposing a cost on
             | the citizens / corporations"
             | 
             | same kind of moronic non-argument for why the US gov can't
             | invest in healthcare, or housing, or education; none of
             | these things are "costs" and all of them are very high ROI
             | investments, but Americanoids are incapable of thinking
             | more than one fiscal quarter into the future
        
               | ralph84 wrote:
               | Government spending on those items is >$3 trillion per
               | year in the US.
        
           | Tanoc wrote:
           | There is something to being wary of rounding up. For example
           | when you get food from a drive-through or buy groceries and
           | they ask you to round up to the nearest dollar, with the rest
           | of the exchange going towards a charitable cause. They do
           | that because at scale it's enough for them to get a tax
           | incentive for charitable donations via other people's action.
           | I refuse to help an international corporation cheese tax law.
           | 
           | But for something like me handing the shawarma guy a tenner
           | for an exchange that comes out to $9.39, it's not anything to
           | even care about. It's a rounding error.
        
             | ensignavenger wrote:
             | That's not how tax law works in the US. See
             | https://taxpolicycenter.org/taxvox/who-gets-tax-benefit-
             | thos...
             | 
             | The corp is acting as a collection agent on behalf of the
             | charity, they don't get to deduct it as a charitable
             | donation. Even if they did, they would have to then count
             | the money as income, which would offset any tax deduction
             | they would get, giving the corp 0 net tax benefit.
        
               | ensignavenger wrote:
               | ...Though they may get some publicity benefit from it,
               | which is why I don't go out of my way to donate using
               | corps as a proxy. If its a small amount that I may not
               | otherwise make, for a good cause, sure. But for my more
               | deliberate giving, I would avoid corp proxies. So I don't
               | give through my employer (unless they are offering to
               | match it with their own funds).
        
             | cgriswald wrote:
             | > They do that because at scale it's enough for them to get
             | a tax incentive for charitable donations via other people's
             | action. I refuse to help an international corporation
             | cheese tax law.
             | 
             | This is a myth. They can't claim this on taxes because they
             | don't have the associated income. To get that using your
             | money, they'd have to claim your donation as income and pay
             | taxes on it, making moot any tax savings (and committing
             | fraud against you to boot).
             | 
             | What they do use your money for is marketing. All the money
             | goes to the charity but they get to say things like "Our
             | program raised a gazillion dollars for those in need."
             | Which has the effect of positive associations of a giving
             | company which hasn't actually given.
        
             | Symbiote wrote:
             | In countries with cash rounding (Denmark, Sweden,
             | Australia, etc) there are strict rules on how that rounding
             | works.
             | 
             | 9.39kr will be rounded here to 9.50kr if I pay cash. 9.24kr
             | would be rounded to 9.00kr.
             | 
             | If I pay electronically it's 9.39kr.
        
           | crazygringo wrote:
           | Is any of that still true though?
           | 
           | I think it was 30 years ago. I don't think it is anymore
           | though.
           | 
           | I think people just mostly stopped caring about getting rid
           | of the penny because they use cards and apps for everything
           | now.
           | 
           | On the one hand, I absolutely think we should get rid of the
           | penny. On the other hand, I couldn't care less because I
           | literally haven't used a coin or a bill for a single thing in
           | years.
        
             | analog31 wrote:
             | It's true that things have changed over the passage of
             | time, and I think that people have also stopped caring
             | about the metric system.
             | 
             | Industry has converted. CAD software lets you switch
             | between US and metric with the flip of a switch. Things
             | like the spacing of pins on a microchip are just arbitrary
             | decimal numbers anyway. The car industry has standardized
             | on metric fasteners. Most US households don't even need non
             | metric tools any more.
             | 
             | A few things like building materials are still US, but once
             | again, for industry, they're just decimal entries into a
             | CAD program, and if they need different sizes, they can
             | order custom sizes from the mill.
             | 
             | Some weird units remain, like spark plug threads, but those
             | things are so unique that there's no reason to switch. The
             | only use for a spark plug wrench is to loosen a spark plug.
             | 
             | As an amusing aside, I still use cash, because of my side
             | occupation as a working musician. I often get paid in cash.
             | It piles up in my house and I have to remember to use it.
             | Also, there's an old tradition of drinking establishments
             | letting the musicians have a free drink, so I keep some
             | small bills in my instrument case to tip the bartender.
        
             | xethos wrote:
             | > On the other hand, I couldn't care less
             | 
             | Sounds like you should be in club "Ditch the penny" -
             | because you don't use cash, the only effect it will have is
             | lower taxes (or more efficient use of what you pay now),
             | because of how much it costs to make pennies.
        
           | pessimizer wrote:
           | > This is the country that gave up on the metric system
           | because it involved too much math.
           | 
           | You say laziness, I say efficiency. More math than necessary
           | is always too much math. It will always be more important to
           | divide things by halves and thirds than by halves and fifths.
           | I would apologize to the French for that, but I'm not going
           | to apologize for always preferring multiples of sixty to
           | multiples of fifty, to a people who count by twenties. If you
           | don't count in decimal, you don't get to be judgemental.
        
       | excalibur wrote:
       | People need to be able to quickly do the math in their heads to
       | make change. More efficient use of coins but harder for everyone
       | involved is not a functional improvement.
        
         | im3w1l wrote:
         | Some of the proposed schemes seem acceptable from that point of
         | view, in particular 1, 3, 10, 25.
        
       | qwerty456127 wrote:
       | We should better introduce $50, $100, $500, $1000 and $5000
       | coins. I'd love my entire salary to come in coins and to be able
       | to pay for any purchase in coins conveniently.
        
         | edward28 wrote:
         | And easier to bankrupt yourself because of a hole in your
         | wallet.
        
           | Symbiote wrote:
           | It wasn't that long ago when it would be normal to be paid in
           | cash (notes and coins) at the end of the week or the end of
           | the month.
           | 
           | Depending on the job sector, this could be the 1970s or 1980s
           | in Britain, for example.
        
         | jareklupinski wrote:
         | perhaps if we reduce these coins to some units of digital
         | currency so we don't have to physically carry them around, like
         | bits, but for coins
        
           | MacsHeadroom wrote:
           | How are you going to prevent fraudulent double spending of
           | these digital coins? You'd have to invent some kind of
           | Byzantine Fault Tolerant (BFT) consensus method.
        
             | codetrotter wrote:
             | Sure, but then you'd need a way for all participants to
             | agree on which transactions are valid. Maybe like a chain
             | of blocks that hold transaction data, and each block is
             | cryptographically linked to the previous one. Sounds pretty
             | difficult. I doubt that anyone would be able to create
             | anything like that any time soon, if ever.
        
               | zeagle wrote:
               | Few more years of AI investment and we can just ask GPT13
               | to create and run this model.
        
               | kijin wrote:
               | That actually sounds more promising than the way most
               | altcoins are operated today. If only Sam Altman doesn't
               | elope with all those GPT13 coins...
        
           | chame7707 wrote:
           | In the year 2045, the world had transformed into a sprawling
           | metropolis of concrete and steel, where the sun rarely
           | pierced the thick haze of pollution. The government, in its
           | quest for absolute control, had implemented a system known as
           | the KYC Protocol--Know Your Customer. It was a measure
           | designed to eliminate fraud and ensure security, but it had
           | morphed into a bureaucratic nightmare.
           | 
           | Every citizen was required to stand in line for KYC checks
           | before making any purchase, no matter how trivial. The most
           | mundane items, like a pack of gum, had become luxuries that
           | demanded hours of waiting. The lines snaked around the block,
           | a serpentine mass of weary faces, each person clutching their
           | identification cards, biometric scans, and digital wallets.
           | 
           | Maya stood in line, her stomach grumbling as she watched the
           | clock tick away. She had been waiting for nearly two hours,
           | the fluorescent lights above flickering intermittently,
           | casting a sickly glow on the faces around her. The air was
           | thick with impatience and the faint scent of despair. She
           | glanced at the digital screen mounted on the wall, which
           | displayed the current wait time: 45 minutes remaining.
           | 
           | "Next!" barked a voice from the front, and the line shuffled
           | forward. Maya's heart raced. She had only come to buy a pack
           | of gum, a small indulgence to brighten her day. But the KYC
           | checks had turned this simple act into a test of endurance.
           | 
           | As she inched closer to the front, she overheard snippets of
           | conversations. A man lamented about the time he lost waiting
           | to buy a loaf of bread, while a woman recounted her
           | experience of being denied a purchase because her biometric
           | data had been flagged as "inconclusive." The stories were all
           | too familiar, a shared trauma that bound them together in
           | this dystopian reality.
           | 
           | Finally, it was Maya's turn. She stepped up to the kiosk, a
           | cold, metallic structure that loomed over her like a
           | sentinel. A screen flickered to life, displaying a series of
           | prompts. She placed her hand on the scanner, feeling the
           | chill of the glass against her skin. The machine whirred and
           | beeped, analyzing her fingerprints, her palm veins, and her
           | heartbeat.
           | 
           | "Verification in progress," the screen announced, the words
           | flashing ominously. Maya held her breath, the seconds
           | stretching into an eternity. She could feel the eyes of the
           | people behind her, their impatience palpable.
           | 
           | "Error," the machine suddenly blared, and Maya's heart sank.
           | "Biometric data does not match records. Please step aside for
           | further verification."
           | 
           | Panic surged through her as she was ushered to a separate
           | area, a sterile room filled with flickering screens and
           | stern-faced officials. The line she had waited in for so long
           | now felt like a cruel joke. She glanced back at the kiosk,
           | where the next person was already being processed, oblivious
           | to her plight.
           | 
           | Hours passed as she sat in the cold room, her mind racing
           | with thoughts of what could happen next. Would she be denied
           | the gum forever? Would she be flagged as a potential threat?
           | The KYC Protocol had become a tool of oppression, a way to
           | control the masses under the guise of safety.
           | 
           | Finally, a woman in a crisp uniform approached her, a tablet
           | in hand. "We need to conduct a manual review of your data,"
           | she said, her voice devoid of empathy. "Please provide your
           | identification and answer a series of questions."
           | 
           | Maya nodded, her heart heavy. She had come for a simple
           | pleasure, but now she was trapped in a web of bureaucracy. As
           | she answered the questions, she realized that the world had
           | become a place where even the smallest joys were overshadowed
           | by the weight of surveillance and control.
           | 
           | After what felt like an eternity, she was finally cleared.
           | The official handed her a slip of paper, a token of her
           | victory. "You may now proceed to purchase your item," she
           | said, her tone flat.
           | 
           | Maya stepped back into the bustling world outside, the slip
           | clutched tightly in her hand. She made her way to the nearest
           | store, where the shelves were stocked with brightly colored
           | packages of gum. As she reached for a pack, she couldn't
           | shake the feeling of unease that lingered in her chest.
           | 
           | In a world where freedom had been traded for security, the
           | simple act of buying gum had become a reminder of the chains
           | that bound them all. And as she walked out of the store, the
           | taste of mint and sugar on her tongue, she vowed to remember
           | the struggle it took to reclaim that small piece of joy in a
           | world gone mad.
        
             | Two4 wrote:
             | Wot
        
         | dijit wrote:
         | You say that, but it used to be a common criticism Americans
         | had of British currency, that large denominations (up to PS2)
         | were exclusively coins.
         | 
         | They cited that coins are in compatible with nearly all
         | wallets, being weighed down, and somehow never actually having
         | exact change.
        
           | wlll wrote:
           | Background: I'm British and live in the UK but have spent a
           | fair amount of time in the US over the years.
           | 
           | I love the dollar bill. I'd really love to have a PS1 and/or
           | PS2 note in the UK. The moment you need any reasonable number
           | of coins to buy anything they become unwieldy in your pocket
           | and you can carry enough dollar bills to be useful without
           | there being a chunk of metal digging into your leg.
           | 
           | I've hears arguments against relating to durability but those
           | are all predate the new plastic notes we have.
           | 
           | For some reason I get a load of pushback when suggesting that
           | a PS1 or PS2 note would be nice to have.
        
             | aniviacat wrote:
             | On the other hand, coins are pretty neat.
        
               | fmajid wrote:
               | They are also far more durable than bills, specially
               | lower-denomination bills like the $1 note that wears out
               | quickly because it is used more than higher-denomination
               | bills.
        
               | SOLAR_FIELDS wrote:
               | I am curious what the cost difference is to manufacture a
               | coin vs a banknote. Certainly the penny is probably going
               | to not be worth much more than a penny in melt value, but
               | for stuff like quarters if I can make 5 bills that each
               | last 5 years that may be more preferential than a single
               | coin that lasts 25 years because it gives better control
               | over the money supply.
        
               | asplake wrote:
               | In our household we call them "parking tokens". We use
               | cash for little else.
        
               | SOLAR_FIELDS wrote:
               | I use them almost exclusively as collectors items for
               | whatever country I visit. And nothing else. America is
               | mostly cashless nowadays anyway. My thought is that at
               | least in America, we will not be rid of coins for another
               | few decades at least . Because gauging by the current
               | climate it looks like the only way we start to phase some
               | of these denominations out is when inflation makes them
               | impractical and useless.
        
             | hakfoo wrote:
             | I think with polymer notes, they might last until withdrawn
             | by UK standards, but that's a unique factor of how fast
             | they cycle their banknotes out. I think even 5 year old
             | English notes (the paper GBP50 with Watt on it) are at the
             | phase where you have to take them to a bank and replace
             | them with polymer ones.
             | 
             | America has always tried to avoid calling back old notes,
             | likely to avoid creating an upset in places where they're a
             | store of value overseas. This means the old ones can
             | circulate basically forever. I can recall my brother
             | getting a $10 note of the 1934 type in a normal transaction
             | in about 2015, and 1977-series $100s seemed strangely
             | common into the 1990s and 2000s. So the survival rates at
             | 10 and 20 years are relevant for American paper in a way
             | that maybe don't apply in the UK.
        
               | 47282847 wrote:
               | Isn't it because the US supports large scale money
               | laundering and tax evasion whereas more civilized
               | societies try to get rid of it?
        
               | electronbeam wrote:
               | I think its meant as not spooking the people in countries
               | with unreliable currencies that hoard USD like one might
               | gold bars
        
             | orra wrote:
             | The Bank of England don't manufacture PS1 notes, but the
             | Royal Bank of Scotland still make them.
             | 
             | Perhaps you can help popularise them, so they make even
             | more!
        
         | netbioserror wrote:
         | And maybe, instead of common metals and assigning them
         | arbitrary value, we could make them out of rare metals (with a
         | little bit of alloying for hardness) and people can trade them
         | for their relative abundance or rarity!
        
           | mistercow wrote:
           | I can only get behind this if there's a fixed exchange rate
           | between two coinable metals that doesn't change with their
           | relative scarcity.
        
           | MrGilbert wrote:
           | Let'em Lithium coins roll!
        
             | WesolyKubeczek wrote:
             | Let's adopt CR2032 batteries as a currency
        
           | A_D_E_P_T wrote:
           | The values of nickel, zinc, and copper are far from
           | arbitrary, and oftentimes the metal value of a coin is higher
           | than its face value. The US penny is >2C/ of zinc and copper.
           | 
           | Besides, metals like lithium corrode too easily, and other
           | rare metals like zirconium/niobium/tantalum/REEs are
           | intrinsically scarce so minting coins from them would be
           | wasteful. Arguably using zinc, nickel, and copper for coins
           | is wasteful, and all coins should be some sort of stainless
           | steel or aluminum. (Like the aluminum Japan 1 yen piece.)
        
         | zeagle wrote:
         | As long as they have prepunched holes in the middle so I can
         | hang them on a chain around my neck like a maester.
        
         | gamerDude wrote:
         | I'd love to find your $5000 coin on the sidewalk!
         | 
         | Sounds terrible to me, coins are so much harder to keep track
         | of!
        
         | kibwen wrote:
         | I understand the romanticism of coins and the nostalgia of coin
         | collectors, but the experience of actually using them is just
         | so much worse than bills. When I go to Canada I immediately
         | relinquish my loonies and toonies to my Canadian friends
         | because they're such a pain to deal with.
        
           | Symbiote wrote:
           | A well-designed set of coins is nice to use, but this is
           | unfortunately rare.
           | 
           | Canada and the USA certainly don't have it. The Euro doesn't,
           | which is odd as the currency is so new -- why are the 10, 20
           | and 50 cent coins so similar?
           | 
           | The Pound Sterling is generally well-designed, with sets of
           | coins in copper-silver-gold materials, and easily
           | distinguishable sequences of shapes and different sizes. The
           | Danish and Swedish coins also work, in the Danish case with a
           | hole to distinguish some denominations.
        
             | SOLAR_FIELDS wrote:
             | I found Danish and Swedish coins to be just as annoying as
             | American coins. They are difficult to tell apart
             | immediately. The Pound and its denominations, I agree, are
             | the best I've encountered so far in real world use.
             | 
             | I wish America would get off its butt about getting rid of
             | the penny. It's such a waste of resources. We don't need
             | it. In fact, Ecuador uses USD as well and they, a country
             | with much lower GDP and prices, don't use our penny. They
             | round up.
        
             | Iulioh wrote:
             | >why are the 10, 20 and 50 cent coins so similar?
             | 
             | ...have you ever used the coins?
             | 
             | All different sizes and the border of 10 and 50 are similar
             | but the 50 is x2 the size and the 20 is totally different
             | 
             | I don't think anyone would say they are similar
        
           | bastawhiz wrote:
           | A bill could never replicate the gratifying "plunk" of
           | putting a dinner plate sized 10kg coin worth $5000 into the
           | Carvana vending machine
        
             | konfusinomicon wrote:
             | the coin purse market in such a world would be a sight to
             | behold
        
       | Jianghong94 wrote:
       | > Probability of a transaction resulting in value v is uniform
       | from [0,99].
       | 
       | in reality, most of the transactions that use coins end up
       | conforming to common existing coin combinations e.g. laundromats
       | in US mostly price as multiples of quarters ($0.25)
        
         | throwuxiytayq wrote:
         | The $X.99 price thing should be forbidden and I'm deeply
         | disappointed in humanity/customerity that we don't shun them
         | and refuse to deal with them
        
           | kijin wrote:
           | It's even uglier in jurisdictions where sales tax is not
           | included in the $X.99 price tag. The total amount you need to
           | pay becomes something like $X+1.07 and you end up with a lot
           | of of unexpected change.
           | 
           | Edit: In the example, I meant X+1 dollars and 7 cents.
           | Apologies for the ambiguous formula, it felt awkward to use
           | parentheses inside of an amount.
        
             | jagged-chisel wrote:
             | $X * 1.07, or $X + 7% (of $X)
        
             | _hl_ wrote:
             | This certainly contributed to people preferring card over
             | cash, making merchants loose ~3% per transaction.
             | 
             | That ship has long sailed, but it does male you wonder: if
             | everything was priced at increments of, say, quarters,
             | would enough people still use cash to offset the lost sales
             | from the allegedly less appealing pricing?
        
               | mitthrowaway2 wrote:
               | I don't know, but I find I use cash much more readily
               | when the price includes tax, because I can confirm ahead
               | of time that the cash in my wallet is enough without
               | breaking a 20 for a pile of coins.
        
               | NeoTar wrote:
               | > making merchants lose ~3% per transaction
               | 
               | Cash also has costs - mistakes in making change,
               | forgeries, time to count/cash up, time to visit banks for
               | cash deposit and/or getting change, theft - it's been
               | estimated that these can easily exceed any costs of
               | handling credit/debit cards.
        
               | Two4 wrote:
               | Cash indeed has a high handling cost. In my country and
               | many others, withdrawing cash at the supermarket teller
               | with your card is free (as in no ATM fees) because it
               | reduces the amount of cash handled and transported by
               | branches. They'd rather eat the cost of a card
               | transaction than pay cash handling costs.
        
               | ta1243 wrote:
               | It's been estimated by card companies that these are
               | higher.
        
               | TrueSlacker0 wrote:
               | I run a business with lots of daily transactions. The
               | cost of balancing cash drawers, getting change, making
               | deposits and balancing those activities in accounting,
               | all totalled, is still cheaper than to pay the credit
               | card fees. Also it's kind of a fixed set of time
               | regardless of how much cash it is. So more cash is more
               | savings but there is definitely a point where if the cash
               | amount gets to low it would be cheaper to go all card.
               | 
               | I think that cheaper propaganda is probably from theft in
               | mostly places that hire minimum wage workers and treat
               | them like slaves.
        
             | tshaddox wrote:
             | I mean, the x.99 prices make more sense in places like the
             | U.S. where state and local sales tax cause the final prices
             | to be somewhat unpredictable anyway. It would be weird to
             | advertise $9.99 when you know that that's going to be the
             | final price.
        
               | NeoTar wrote:
               | It happens in Europe where we have inclusive pricing in
               | almost all, if not every nation.
               | 
               | (apart from very rare circumstances like bottle deposit
               | costs (which are refundable) not being included)
        
               | sigio wrote:
               | At least the bottle deposits (EUR0.15 or EUR0.25) are
               | listed with tax included and can be payed with 2 coins
               | (10+5 or 20+5)
        
               | janalsncm wrote:
               | That would be a reasonable argument if sales tax
               | fluctuated more often than the prices of goods. In
               | reality, it's the other way around.
        
           | ThinkingGuy wrote:
           | I'd rather we outlaw the ridiculous "and 9/10 cents" that is
           | appended to every single gasoline price in the US, and that
           | everyone ignores when reading.
        
         | hgomersall wrote:
         | This makes the rest of analysis irrelevant. Kind of like most
         | mainstream economics, where they start from some convenient but
         | wrong assumptions, then build an edifice on top of those and
         | make strong statements inferred from said edifice.
        
       | GolfPopper wrote:
       | Why not just re-index the dollar so that coins are useful amounts
       | of currency?
        
       | herf wrote:
       | I was curious what the theoretical distribution of digits might
       | be, did not know that there is an extension of Benford's law for
       | later digits which suggests the uniform assumption is quite
       | nearly right:
       | https://en.wikipedia.org/wiki/Benford%27s_law#Generalization...
       | 
       | Of course in real life, 50 cents and 99 cents are way more
       | common.
        
       | alexshendi wrote:
       | I think we need a 1337 cent coin!
        
       | matthewaveryusa wrote:
       | The coins proposed are all prime, which makes sense to me
       | intuitively. You'll always need a 1 coin. I'm curious if it's
       | generally true that optimal coins for any given range starting at
       | 0 will be primes?
        
         | kijin wrote:
         | I take issue with the assumption that you always need a 1 coin.
         | 
         | If we're going to go to such great lengths to minimize the
         | number of coins, even at the cost of making real-life
         | transactions more complicated, we could totally forgo the 1
         | coin and just have 2 and 5. If an amount ends in 1, you pay 5
         | and get two 2s back. Now you can have a coin system that is
         | entirely primes!
        
       | TheMechanist wrote:
       | Two obvious problems: the fractional part of the price is not
       | uniform over [00..99] and the system has 5 coins, since in 2021
       | minting for the half-dollar coin was restarted.
        
       | orthoxerox wrote:
       | Why is a 11-cent coin ridiculous? With nine of them you could pay
       | for these X.99 products and not get a penny in return.
        
         | Finnucane wrote:
         | Yes, we should totally revamp our coins to suit the needs of
         | retail marketing.
        
         | umvi wrote:
         | Because X.99 products are pre tax, so you really have to pay
         | X.99 + X.99 * 0.0Y
        
           | bitdivision wrote:
           | This made me wonder about the origins of the 0.99 price. I
           | had always thought it was largely to avoid theft, by ensuring
           | the worker had to open the till for change on every
           | transaction. Which makes sense if there's no sales tax, but
           | if there is sales tax then you might as well round everything
           | to the dollar.
           | 
           | Possibly sales tax wasn't a thing when this became a common
           | practice.
           | 
           | Makes the argument for the psychological effect of 0.99 vs
           | 1.00 much stronger these days though I suppose.
        
           | zertrin wrote:
           | In the US, sure, but most of the world display prices
           | inclusive of tax. (at least from my experience in EU and
           | Asia)
        
       | zitterbewegung wrote:
       | Most efficient would be to start rounding purchases to the
       | nearest five cents (if is isn't electronic) and get rid of the
       | penny which costs more to produce than the penny is worth.
        
         | NeoTar wrote:
         | But an average one cent coin is involved in more than a single
         | transaction - if you amortise the cost of the coin over every
         | transaction it is involved in, then it's much less than one
         | cent.
         | 
         | If the cost of metals in a coin is more than its value, you do
         | have a point.
        
           | sigio wrote:
           | In the Netherlands we've been rounding to 5ct intervals for
           | 20+ years now, and 1ct coins were abolished long ago. With
           | the introduction of the euro, the 1ct and 2ct coins returned,
           | but all shops still round to 5ct for cash transactions.
           | 
           | Every time I return from Germany I have a handful of 1 and
           | 2ct coins though, since they haven't done this, and most
           | prices are X.99.
        
       | dang wrote:
       | Related:
       | 
       |  _Do We Need a 37-Cent Coin?_ -
       | https://news.ycombinator.com/item?id=1694075 - Sept 2010 (137
       | comments)
       | 
       |  _Freakonomics: Do We Need a 37-Cent Coin?_ -
       | https://news.ycombinator.com/item?id=864838 - Oct 2009 (50
       | comments)
        
       | abetusk wrote:
       | There's a question on SE cstheory site that addresses the more
       | general problem [0]. I wonder if this problem is still open.
       | 
       | [0]
       | https://cstheory.stackexchange.com/questions/5861/asymptotic...
        
       | jmclnx wrote:
       | not anymore :)
       | 
       | Personally, in the US, pennies, nickles and dimes should be
       | eliminated.
       | 
       | I think we are at the point were paper money $1, $2 and $5 should
       | be replaced by coins. But that would cause a huge uproar in this
       | country.
        
         | kccqzy wrote:
         | I personally prefer bills (paper or plastic) because they are
         | lighter weight than coins. I would very much like to see 25C/
         | bills.
         | 
         | Some countries use plastic rather than paper for bills of small
         | denomination. They feel more pleasant and probably last longer.
         | I also prefer these.
        
       | conductr wrote:
       | At some point, that we are possibly near to, doesn't the value of
       | a dollar become so small that the fractions of a dollar that
       | coins represent aren't even worth dealing with?
       | 
       | If so, and transactions just rounds to nearest dollar the we are
       | basically expecting that over our lifetime it will nearly balance
       | out without the need to think about it too much.
        
       | efitz wrote:
       | Touching coins is icky.
        
         | sigio wrote:
         | Way less then banknotes... bacteria etc don't like metals
        
       | ChuckMcM wrote:
       | I love thinking about problems like that. Yes it is impractical
       | and unlikely to result in any change but it also helps illuminate
       | relationships (like # of coins in your change) that you might not
       | otherwise see.
       | 
       | Of course, as an economist Patrick (the person asking the
       | question in the article not the author) ignores what is most
       | important about choosing coins "Can the teller give you change
       | quickly and accurately?" That is the important question because
       | GDP depends on transaction flow, and anything that hinders
       | transaction flow is a net negative on GDP[1].
       | 
       | Using the Suica card in Japan I was reminded again of how useful
       | it would be if the government would just bless a pure stored
       | value cash card. Yes, I understand the arguments against it
       | (mostly based on surveillance IMHO) but still it would be a
       | useful thing in terms of getting us to 0 coins per transaction.
       | :-)
       | 
       | [1] Yes, I subscribe to the theory that GDP is inherently a time
       | based numbers "value per unit time"
        
       | Const-me wrote:
       | In ideal world, I would prefer coins to be powers of 2.
       | 
       | It requires 7 coins in [ 1 .. 64 ] range to reach 100, but the
       | average of popcnt( 1 .. 99 ) is only 3.19 coins per transaction,
       | way better than 4.1 coins.
        
         | IanKerr wrote:
         | Now account for the amount of mental overhead required for the
         | average person to calculate change or coinage of a random
         | amount in base two coins, as opposed to multiples of 5 or 10,
         | and see if your 3.19 coins per transaction really saves you
         | time.
        
           | aaronax wrote:
           | One could simply switch to a base 16 numbering system as
           | well!
        
           | Const-me wrote:
           | I think the amount of mental overhead with base 2 coins is
           | still less than with the proposed [ 1, 3, 11, 37 ] solution.
        
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