Monday, February 11, 2013

Keep the penny, and why you shouldn't complain about the poor

The worthless penny.  Most people probably do not even spend the time to bend over and pick up these reddish pieces of metal.  There is always talk about eliminating the penny because it costs to much to make.  They also talk about eliminating the nickel because of the same reasons.

When I think of the penny and the nickel...I think about the poor.  Why?  Because like the penny and the nickel...people always are complaining about them for all their financial problems. 

Have you ever wondered why the Korean Won and the Japanise Yen is around 1,000 = $1.  Well, they didn't like their penny either. However, unlike Americans they did something about it.  Low and behold their version of the dime quickly became the new penny.

What does this mean?  Well, it means that you know all those people who complain about the poor, the lazy, the welfare babies.  Whatever you want to call poor people.  If you complain about them, and let's say the "go away"...guess who will be the new poor people?  That's right...the middle class.  The ones who were doing most of the complaining.  It's like if you are on the basketball team of 12 players, and let's say you are the 11th best player.  The worst player quits...that makes you worst player.  Shouldn't be something to strive for.

What we should do is figure out ways help the poor.  Help increase their standard of living, thus lifting our standard of living as well.  I hear a lot of talk about helping the poor and middle class, but the the gap keeps this isn't working well.  Kinda like education...people aren't testing better, nor getting smarter and jobs aren't being created.  Something seriously is wrong with the system.  CNN wrote an article that pretty much sums up how median income has decreased, while wealth to a select few has increased.  Just my two cents...


  1. MAybe we need to come up with a 2 cents coin?

  2. This comment has been removed by a blog administrator.

    1. Mr. Anonymous...if one day our banks said, sorry no more pennies do you think it is as simple as rounding up and down? So if something that typically cost 3 cents now costs you 5 cents what percentage increase is that? 66% loss in purchasing power is what it is. Let's say something cost $0.95 plus tax. Where I live the tax is 6.5% bringing the total to $1.01. Do you think they will round down? no your cost will be $1.05. It's called debasing your currency. It hurts poor and the middle class the most. In 1965 they removed silver from our dimes and quarters. Currency was debased, wages have been supressed, jobs removed etc. Rome did the same thing by shaving their currency which is why the U.S. dimes and quarters have milled edges. We still mill the edges of our quarters and dimes, but there is no reason to do this anymore since the base metal in such a small quantity is near worthless. The Korean population did not become more wealthy by removing their penny, nor did Rome become more wealthy by changing their base metals in their currency. It's like the argument that smoking isn't bad for grandpa lived until he was 83 years old. It costs to much is just silly. Why don't use dollar coins instead of paper? Why don't we just make our coins out of plastic or wood? Why not go to a paperless currency? None of these things empower people.

    2. Nothing takes place as quickly as you think. Polticians aren't stupid. Their goal is to cause a slow death. The truth is most of the jobs we do today could be automated. We really don't need people to do much of anything. The problem is capital (money, land, equipment etc.) is controlled by a minority. Who ever controls the capital, makes the rules and is lord of the land. Labor is worthless, but needed and wields no power. Labor can be replaced at anytime by either machines or through taking advantage of people on hard economic times. Removing the penny is nothing more than a distractor, and will solve nothing. But with every change comes great opportunity. Not everyone loses money when the stock market crashes, or when the real estate market crashes, or when our currency is debased. No...the rich get richer, and the poor get poorer...and will continue until the tipping point where enough people get upset and start a revolt, or people are tricked by being content with the crumbs that they are given.


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