Originally Posted by Pocket-full-of-gold
We dropped 1 and 2 cent bits here in Oz years ago for exactly the same reason....it cost more to make than the value of the coin. As far as I'm aware it's had no material impact on anything.......it certainly hasn't affected day to day living despite many people raising similar questions to those raised here (there were concerns at the time that it may evolve on to include 5 cent peices as well, but as yet this hasn't materialised). Everything is just rounded up (or down....believe it or not, it does actually happen on occasion).
Although sadly Grunter, it has done nothing to eliminate things being advertised at $19.99 instead of a neat $20. That old sales trick is still seen everywhere.
My brother lives in Sydney and when he visited he showed me the polymar bills and I thought that was great idea, well sure enough we are going that route as well. So far just the 20's and 50's but eventually everything. Your bills are better though, our new 20 seems to be a bit thinner. I also liked the idea of the smaller denominations being smaller in size.