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Why Are Coupons Worth 1/100th of a Cent?

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The next time a coupon shows up in your mail, take a look at the fine print. There’s a pretty good chance it will read something to the effect of “Cash Value 1/100th of a cent.” Why in the world is that writing on there? And are 10,000 copies of this coupon really worth a whole dollar? Let’s take a look at this coupon quirk.

Putting a Stamp on Customer Loyalty

Before we can answer the coupon-value question, we need to take a peek into a seemingly unrelated footnote in the history of commerce. Let’s talk about the mostly forgotten practice of businesses handing out trading stamps with purchases.

Trading stamps first found their way into merchants’ registers in the 1890s. When customers made a purchase, stores would given them stamps that reflected how much they had spent; a common exchange rate was one stamp for every dime spent on merchandise. Once a customer had saved up enough stamps – often over a thousand – they could swap them for something from the stamp company’s catalog, like a toaster or a clock.

The trading stamps were a runaway success. Supermarkets, gas stations, and department stores would advertise that they gave away a certain brand of stamps to help lure customers in, and the customers could then lick and paste their saved stamps to get “free” merchandise. Everyone was happy, and the system flourished. At one point in the 1960s, S&H Green Stamps printed more stamps each year than the Postal Service did. The circulation of the company’s catalog topped 30 million. The big stamp makers like S&H even built brick-and-mortar “redemption center” stores around the country.

As any economist worth his cost function can tell you, though, the toasters and vacuum cleaners that customers got weren’t free at all. Merchants had to pay for the stamps they gave away, and the cost of the stamp obviously got passed along to the customer in the form of higher prices.

Even in the early days, it didn’t take long for customers to figure out that the system wasn’t quite as rosy as merchants made it out to be. By 1904 New York had enacted laws that forced stamp makers to put a cash face value on each stamp that would enable consumers to bypass catalog redemptions and get money back for their stamps. Other states followed suit.

As one might guess, the individual stamps didn’t get princely face values. A 1904 New York Times piece noted that most stamp makers were given the value of “one mill,” or 1/10th of a cent. That valuation meant that a customer with a full book of 1,000 stamps could redeem it for a dollar. The same piece noted, though, that a customer who used the stamp makers’ catalogs could probably get an item worth three or four dollars for the same number of stamps, so the cash-redemption idea never really took off with most shoppers.

What happened to trading stamps? Their popularity peaked in the 1960s when nearly 80 percent of American households saved stamps, but within a decade the craze had died. Manufacturer coupons that shaved money off of items’ prices became more popular as inducements to get shoppers into stores, and the fuel crisis of the early 1970s sapped away the stamps’ large market at gas stations.

So What Does All This Have to Do With Coupons?

At first glance, coupons and trade stamps wouldn’t seem to have all that much in common. After all, coupons lower the price of an item, while the beef with trade stamps was that they passed a hidden (and often unwanted) cost along to consumers. But some states legally lump trade stamps and coupons in together, so coupons distributed in these states have to bear some printed cash redemption value.

According to the Association of Coupon Professions, only three states require this declaration of redemption value: Indiana, Utah, and Washington. Since many coupons are designed for national distribution, though, the redemption value ends up printed on all of them. As with the old trade stamps, it doesn’t really matter how infinitesimal the stated value is as long as it’s not zero. Thus, you see coupons that are worth 1/10th, 1/20th, or 1/100th of a cent.

So Can I Round Up 20 Coupons and Get a Penny?

In theory, yes. It’s hard to find reliable, concrete examples of someone schlepping in a hundred coupons to swap them out for a penny, but the web is full of anecdotes in which people “test the fine print” by trading in a giant stack of coupons for their face value at the supermarket. In all likelihood, though, you’d need to mail the coupons to the issuing company, which is a pretty lousy financial proposition given the price of stamps.

If you’re sitting on a big pile of Shake N Bake coupons, you might as well give it a try; your supermarket will probably gladly surrender a penny to ensure you don’t make a scene.

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Big Questions
How Long Could a Person Survive With an Unlimited Supply of Water, But No Food at All?
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How long could a person survive if he had unlimited supply of water, but no food at all?

Richard Lee Fulgham:

I happen to know the answer because I have studied starvation, its course, and its utility in committing a painless suicide. (No, I’m not suicidal.)

A healthy human being can live approximately 45 to 65 days without food of any kind, so long as he or she keeps hydrated.

You could survive without any severe symptoms [for] about 30 to 35 days, but after that you would probably experience skin rashes, diarrhea, and of course substantial weight loss.

The body—as you must know—begins eating itself, beginning with adipose tissue (i.e. fat) and next the muscle tissue.

Google Mahatma Gandhi, who starved himself almost to death during 14 voluntary hunger strikes to bring attention to India’s independence movement.

Strangely, there is much evidence that starvation is a painless way to die. In fact, you experience a wonderful euphoria when the body realizes it is about to die. Whether this is a divine gift or merely secretions of the brain is not known.

Of course, the picture is not so pretty for all reports. Some victims of starvation have experienced extreme irritability, unbearably itchy skin rashes, unceasing diarrhea, painful swallowing, and edema.

In most cases, death comes when the organs begin to shut down after six to nine weeks. Usually the heart simply stops.

(Here is a detailed medical report of the longest known fast: 382 days.)

This post originally appeared on Quora. Click here to view.

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Big Questions
Why is Friday the 13th Considered Unlucky?
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Today, people around the globe will feel uneasy about getting out of bed, leaving their homes, or going about their normal daily routines, all because of a superstition. These unfortunate folks suffer from “paraskavedekatriaphobia,” a common neurosis familiar to us all: the fear of Friday the 13th. But just where did this superstitious association come from, and how did it catch on?

The truth is that no one is absolutely sure where the idea that Friday the 13th is unlucky originated. Donald Dossey, the founder of the Stress Management Center and Phobia Institute in Asheville, North Carolina, suspects the fear can be traced back to a Norse myth about 12 gods who had a dinner at Valhalla—the fabled hall where legendary Norse heroes feasted for eternity after they died—that was interrupted by a 13th guest, the evil and mischievous god Loki. According to legend, Loki tricked Höðr (the blind god of winter and son of Odin, the supreme god in Norse mythology) into shooting his brother Baldr (the benevolent god of summer who was also a son of Odin) with a magical spear tipped with mistletoe—the only substance that could defeat him. Thus the number 13 was branded as unlucky because of the ominous period of mourning following the loss of such powerful gods by this unwanted 13th guest.

For whatever reason, among many cultures, the number 12 emerged throughout history as a "complete" number: There are 12 months in a year, 12 signs of the zodiac, 12 Gods of Olympus, 12 sons of Odin, 12 labors of Hercules, 12 Jyotirlingas or Hindu shrines where Shiva is worshipped, 12 successors of Muhammad in Shia Islam, and 12 tribes of Israel. In Christianity, Jesus was betrayed by one of his 12 Apostles—Judas—who was the 13th guest to arrive for the Last Supper. Surpassing the number 12 ostensibly unbalances the ideal nature of things; because it is seen as irregular and disrespectful of a sense of perfection, the number 13 bears the stigma of misfortune and bad luck we know today.

WHY FRIDAY?

Friday joins in the mix mostly because all of the early accounts of Jesus’s crucifixion agree that it took place on Friday—the standard day for crucifixions in Rome. As Chaucer noted in The Canterbury Tales, "And on a Friday fell all this mischance." Yet perpetuating Friday as an unlucky day in America came from the late 19th-century American tradition of holding all executions on Fridays; Friday the 13th became the unluckiest of days simply because it combined two distinct superstitions into one. According to the Oxford University Press Dictionary of Superstitions, the first reference to Friday the 13th itself wasn’t until 1913. (So despite actually occurring on Friday, October 13, 1307, the popular notion that the Friday the 13th stigma comes from the date on which the famed order of the Knights Templar were wiped out by King Philip of France is just a coincidence.)

The repercussions of these phobias reverberated through American culture, particularly in the 20th century. Most skyscrapers and hotels lack a 13th floor, which specifically comes from the tendency in the early 1900s for buildings in New York City to omit the unlucky number (though the Empire State Building has a 13th floor). Street addresses sometimes skip from 12 to 14, while airports may skip the 13th gate. Allegedly, the popular Friday the 13th films were so-named just to cash in on this menacing date recognition, not because the filmmakers actually believed the date to be unlucky.

So, is Friday the 13th actually unlucky? Despite centuries of superstitious behavior, it largely seems like psychological mumbo jumbo. (One 1993 study seemed to reveal that, statistically speaking, Friday the 13th is unlucky, but the study's authors told LiveScience that though the data was accurate, "the paper was just a bit of fun and not to be taken seriously." Other studies have shown no correlation between things like increased accidents or injuries and Friday the 13th.)

And Friday the 13th isn't a big deal in other cultures, which have their own unlucky days: Greeks and Spanish-speaking countries consider Tuesday the 13th to be the unluckiest day, while Italians steer clear of Friday the 17th. So today, try to rest a little easy—Friday the 13th may not be so unlucky after all.

Additional Source: 13: The Story of the World’s Most Popular Superstition.

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