Sentimentalism for a Debased Currency

Blog, Economy, David Seymour

In today’s Saskatoon Star Phoenix Les McPherson has a characteristically well written piece on the pointlessness of retaining the penny.

He’s right, Canada is behind the times. Pennies cost more than their nominal value to produce and have to be produced en masse every year because people don’t find them worth their while to recirculate. Australia has long since abolished its one and two cent pieces. New Zealand doesn’t even have fives anymore. Both currencies typically fluctuate within 40 per cent of the Loonie’s purchasing power.

Perhaps at some level, though, people resist abolishing the penny because to do so would be to acknowledge the continual debasement of our currency.