VioletZer0 posted...
Just get rid of the last digit all together.
Instead of $1.00, it should read $1.0
Then we phase out the final decimal place later so it is just $1.
That doesn't really work because quarters are still a useful level of granularity at the consumer level. That would limit the subdivisions to halves, fifths, and tenths. Halves are too large, fifths are kind of awkward, and tenths are too small. Halves and fifths would also require new denominations of cash (even if the half-dollar has existed before).
Obviously on the industry side of things there can be as many decimal places as you need, but making decisions for the consumer side of things needs to take into account what's convenient to pay in cash. In that regard, quarters are useful, everything smaller sucks.
ParanoidObsessive posted...
There is logic to his argument. Unfortunately, if we still psychologically resist getting rid of pennies, good luck getting rid of something that magnifies the entire problem by x5.
Indeed. Even getting rid of everything smaller than quarters would have a pretty negligible impact for people's overall finances (testing it out on some of my personal finances, it worked out to losing a couple dollars when I'd spent ~$50k in the year), but people tend to fixate on the idea that they'll be ripped off by rounding and let that blind them to the benefits.