Could the End of the Penny Cost Consumers Millions?
Imagine a world where cash is a thing of the past, and the penny is no more. Sounds like science fiction, right? But, as our guest, Dr. Scott Strong, explains, this might not be as far-fetched as it seems. In this episode of the Kendall and Casey Show, we dive into the potential consequences of the penny’s disappearance and how it could impact your finances.
Dr. Strong, a college professor and numbers expert, has been tracking the trend of cashless transactions and the effects on consumers and businesses alike. He shares a fascinating story about his recent experience at White Castle, where he discovered that the restaurant’s corporate policy is to not give customers their pennies back. “They just kept it,” he says, highlighting the surprising revelation. This got him thinking: if one major business is doing this, how many others might be following suit?
Dr. Strong’s math is eye-opening. He estimates that if White Castle alone were to keep just one cent per cash transaction, they’d be making an extra $835,000 a year. Multiply that by the number of businesses across the country, and the numbers become staggering. “That’s a lot of money,” he emphasizes. “If it’s just one cent, that’s one point six eight million dollars for me.” This got him wondering: what if this practice becomes widespread?
The implications are significant. If businesses start rounding up or keeping pennies, consumers could see a 3-5% increase in their transaction costs. For those who use cash frequently, this could add up to millions or even billions of dollars per year. As Dr. Strong notes, “That’s a huge amount of money.” This got him thinking about the broader impact on our economy and the potential consequences for consumers.
Throughout the episode, Dr. Strong shares his insights on the intersection of cashless transactions, AI, and the future of money. He also talks about the importance of critical thinking skills in the age of AI and how we can balance our reliance on technology with the need for human intuition. “We’re dumbing down the critical thinking skills of the next generation,” he warns.
You can listen to the full interview here:
