When Great Britain got rid of the Half-Penny thirty years ago, there were fears that it would cause a spike in inflation as retailers all began rounding up to the nearest penny. In all likelyhood, however, it didn’t really have much effect at all.
When the Royal Mint stopped producing the half-penny in the early eighties, inflation had already taken its toll on the coin, to the point that retailers complained they couldn’t give them away as change, people would simply leave them behind on the counter. It was also speculated that the cost to produce the coin was much higher than its face value, but history is full of examples of coins that cost more than their face value. These are some of the reasons that Great Britain eventually abolished the half-penny, but why did it take so long?
Does this sound familiar? With the Canadian penny now a relic of a bygone era, we’d like to know how if you think that these small denomination coins really matter. Do you miss the penny? What impact does not having pennies have on you? Join the conversation in Google+ below!