A Dime For Your Thoughts

While I generally make it a point to avoid political commentary in this blog, I couldn't help but reflect on the new administration's recent proposal to eliminate the penny. While many policies and decisions have sparked debate, I feel that the "penny proposition"—a name I just coined (pun intended)—is something we can all rally around.

There was certainly a time in my life when I would have argued for keeping the penny—perhaps around 1985, when I'd use one to get a gumball from the machine at the Purity Supreme Supermarket in Peabody (always hoping two would come out). But it has been quite some time since I’ve had any real need for a penny. And, in learning that it costs almost four cents to produce one, it doesn’t seem to make much economic sense to continue doing so.

While I’m sure we’ll hear plenty of pro-penny arguments (which I’m open to hearing), it seems to me like it’s time for the penny to be pinched. However, before the naysayers speak out, I’d like to remove the following reasons from consideration. These are not good rationales for any life or business decision:

1. "It’s how we’ve always done it." Whether it’s eliminating the penny or considering the application of AI in business, we must evolve with the times. If we followed this logic, we’d still be cooking over open fires and traveling via horse and buggy.
2. "Some people still use/want them." There will always be laggards—people who resist change—but they cannot be a reason to maintain the status quo. Change may be uncomfortable at first, but people adapt. Even die-hard mail-order CD lovers from 2001 are now enjoying Netflix streaming. (Netflix finally sent its last DVD in 2023.)
3. "This will upset some people." As with any change, some will be upset—sometimes just on principle alone. For example, I imagine there will be many Abe Lincoln supporters rallying for the penny. But come on, he’s also on the five-dollar bill. You can’t please everyone all the time, and trying to do so often leads to complacency rather than meaningful progress.
4. "Change will be difficult." It often is. But difficulty alone is not a reason to avoid it. If the long-term cost of change outweighs the cost of maintaining the status quo (with all other factors being equal), then that’s a discussion about cost, not difficulty.
5. "I don’t support the person who proposed the change." Whether it’s the President of the U.S., your boss, or a colleague, we shouldn’t dismiss an idea just because of our personal feelings about the person who proposed it. Perhaps the proposal merits a bit more scrutiny, but it should be judged on its own merits. Don’t let personalities prevent progress.

Whether you’re pondering the future of the penny, your next business move, or even what to have for dinner on Sunday night, consider the above. The status quo isn’t always the best solution. Change is often a good thing—except, perhaps, in the case of the penny. ?? (There are just too many lay-ups here.) Personally, I recommend eliminating the nickel too, and rounding all prices to the nearest ten cents - just lose the 1/100 decimal point all together. If we’re going to make a change, let’s go all out.

As always, if this message resonates with you, feel free to share it with someone who might benefit from these insights. I'd also love to hear what you think - a dime for your thoughts? Just leave a comment here.