Since 1982, 327 billion pennies have been minted. Theyre so hard to use that they end up stuffed in jars or abandoned on sidewalks. It would also cause prices to rise. . In 1990, he testified before the Senate Banking Committee that his careful statistical analysis of prices showed that rounding cash sales up or down to the nearest nickel would cost consumers around $600 million per year (around $1.2 billion in 2021 dollars). Instead, the coins will be gradually pulled out of circulation. Citizens to Retire the U.S. Penny cites a study done by Walgreens and the National Association of Convenience Stores showing that handling pennies adds an average of two seconds to each cash transaction. Reason one as to why the penny should be eliminated because in today 's world nothing can be purchased with a penny. The nations earliest one-cent pieces aptly called large cents by collectors were big, bulky pure copper coins roughly the same size and weight as half dollars. As the U.S. Mint faces the prospect of having to find more cost-effective compositions from which to make the nation's coinage, the debate about the continued existence of the humble penny is sure to carry on. Penny supporters point out that if we get rid of the penny, all-cash transactions will have to be rounded off to the nearest nickel. We Have a Precedent for Eliminating Worthless Coins. [18] Harvard economist Greg Mankiw stated, The purpose of the monetary system is to facilitate exchange. The total amount doesn't end when coins and citizens are debating the penny and whether or not it should be kept. Producing the penny costs taxpayers money: In 2021, each penny produced cost 2.10 cents to make and distribute. If more businesses follow Chipotles example and start rounding down their bills, their customers will find themselves with fewer pennies in their pockets. Author: www.thebalancemoney.com. 12, 2012, United States Mint, "United States Mint 2015 Annual Report," usmint.gov, June 2016, Associated Press, "US Penny Campaign Benefits Blood Cancer Research," newsday.com, Feb. 10, 2009, University of Southern California, "The USC Penny Harvest Wrapped up Its Third Successful Year," communities.usc.edu (accessed July 2, 2018), Common Cents, "Non-Profits," commoncentsdallas.org (accessed July 2, 2018), Mary Hance, "Penny Drive Sets Record in Raising Money for Second Harvest," tennessean.com, Feb. 17, 2017, Vlogbrothers, "I HATE PENNIES!!!! If 77.1% of you voted to keep the penny in our 1st poll I bet we can . ProCon/Encyclopaedia Britannica, Inc. Should we keep the penny Rating: 4,5/10 932 reviews The United States penny, or one-cent coin, has been in circulation for over two centuries and is a longstanding symbol of American currency. Vending machines dont accept them, and neither do most parking meters. Discover what happens, how to avoid it, and what you can do if it's too late. Keeping the Penny. Several Chipotle restaurants tried this in 2012, but customers who had extra cents added to their bills complained. The elimination of the penny would cause prices to be rounded up to the nearest nickel, which would be a burden on consumers, businesses, and the economy. The coin shortage could be a rallying cry for a long-running movement that has lost steam in recent years: Kill the penny! But one point that these advocates often overlook is the value of honoring Abraham Lincoln, the revered president depicted on the penny's face. Management decided that losing a cent or two on most transactions was better than having long lines of customers waiting for change. It's clear that the modern penny is no longer necessary in our financial system. That doesnt sound like much, but a 2019 Federal Reserve study shows that the average consumer still makes 11 cash transactions each month and according to the Bureau of Labor Statistics, there are over 343 million consumers in the country. That will save Canadian taxpayers $11 . Its possible that what happens to the penny could end up depending not on the law, but on decisions made by businesses. Despite the cost incurred by the Federal Reserve for minting pennies, many Americans still feel it important enough to honor Lincoln's legacy that they keep the coin bearing his image in circulation. However, the nickel is in just as bad a shape as the penny. His mission is to use his platform as an author to bring awareness and perspective on important issues affecting everyday life. [27], As a result of that extra time per transaction, the average citizen wastes 730 seconds a year (12 minutes) paying with pennies. The problem is, too many believe the present administration and government in D.C. is reasonable, when its actually FUBAR. The analysis also shows that tooth decay is still the most common reason for hospital admission with 30,000 children and young people aged 0-19 admitted to hospital last year. That would cost an estimated $10.9 million more annually than it would cost to keep making pennies. -Pennies are less costly to make than nickels, as 5 pennies, costing 6.3 cents to make at 1.26 cents per penny are less cheaper than nickels, which are cost 7.7 cents to make. Although originally made of pure copper, pennies today are composed of 97.5% zinc and 2.5% copper. In 1857, the U.S. Mint stopped making the half-cent coin, partly because the cost of making it had exceeded its face value, and somewhat because it was considered to be too small a denomination and it was no longer needed. 9 "Centsible" Reasons to Get Rid of the Penny . TD Ameritrade. Robert M. Whaples, Professor of Economics at Wake Forest University, crunched the numbers and found that The convenience stores and the customers basically broke even. [30], 1. We like to give back to our local art community by presenting presidential line of succession 2022 - A fresh look at a contemporary and traditional southwestern art work. As the U.S. Mint explains, the copper surface of a penny accounts for only 2.5% of its metal content. To access extended pro and con arguments, sources, and discussion questions about whether the penny should stay in circulation, go to ProCon.org. I personally think that we should keep pennies for these reasons. The official name for the US penny is one-cent piece, according to the US Department of the Treasury, but early Americans were allegedly in the habit of using the British term penny. [4][35], 4. He has written for many top publications, such as The New Yorker, Huffington Post, and The Wall Street Journal. Unlock the Ultimate Benefits with the United 1K Guide! Whatever the reason, I think it's clear that no matter how you add it up, it just makes more sense to get rid of the penny. We should get rid of pennies because it cost less and is useless but it could be helpful, I think we should keep the penny because it is sill money, what the creep who ever wrote these are all bum hahahahaha. We Won't Forget President Lincoln. Numerous Americans are in favor of keeping it due to sentimental value, while others say it is just too costly. Penny opponents such as Kolbe, Whaples, and Mankiw have all expressed the hope that the pandemic and the resulting coin shortage will finally provide the incentive for Congress to get this virtually worthless coin out of our pockets and our lives. In conclusion we should get rid of the penny. The less a person makes the more the saying "every penny counts" rings true. The Fascinating Journey of the United States Penny, Penny Stocks Trading Guide: A Beginner's Primer, Creating an LLC NJ: A Simple, Step-by-Step Guide. The current cost for manufacturing a nickel is 7.29 cents per coin. These adjustments are not costless, so there is resistance from some parties who do not want to pay transition costs. Accessed April 27, 2023. https://www.procon.org/headlines/should-the-penny-stay-in-circulation-top-3-pros-and-cons/, United States Mint, "United States Mint 2020 Annual Report," usmint.gov, 2021, Brian Milligan, "The Penny Coin: Should We Follow Ireland and Phase It Out?," bbc.com, May 8, 2016, The Harris Poll, "Penny for Your Thoughts? There are multiple upsides as well as downsides to America discontinuing minting the penny. They are also bf and environment this doesnt make your hands very very very stinky I dont like the smell of metal. [ 36 ] 6. People think we should not make pennies because they cost 2 cents to make. While countries such as Australia . Or should the U.S. keep it's smallest coin? Accessed Oct. 21, 2020. Jarden and the zinc industry are fighting to keep the penny. Please refer to the appropriate style manual or other sources if you have any questions. Despite what the old song says, pennies dont really come from heaven. We may have financial relationships with some of the companies mentioned on this website. Once the timer stops, you can always click . And since the Mint produces billions of pennies a year, the government loses millions of dollars annually in the process. Nickels cost even more to make - If we eliminate the penny, we will need more nickels in circulation. The army don't think we even need the penny because it too heavy to travel. In the rare case you have never heard of or used a penny, it is the one cent coin in U.S. In June of this year, New York Times op-ed columnist William Safire wrote an article calling for the elimination of the penny. Some Hope Not," nytimes.com, July 29, 2020. All information published on this website is provided in good faith and for general use only. The US Mint shipped 8.4 billionpenniesfor circulation in 2017, more than all nickels (1.3 billion), dimes (2.4 billion), and quarters (1.9 billion) combined. A graduate of NYU, he has an MA in English literature and loves literature from all ages. The production and use of the penny is no longer cost-effective, so it may make sense to eliminate it as a way to save money and resources. It may even save money in production costs, as fewer pennies would need to be minted. Amy Livingston is a freelance writer who can actually answer yes to the question, "And from that you make a living?" Sign up for more easy craft ideas, fun hobbies, and DIY projects, Lincoln Wheat Penny Key Dates, Rarities and Varieties. Whaples, by contrast, analyzed actual data from more than 200,000 convenience-store transactions in seven states. The Mint made nearly 6 billion pennies in 2012 and lost a cent on every single one of them. A 2006 Coinstar poll found that 33 percent of American men and 22 percent of American women do not value spare change. However, it doesn't say what those reasons are. Yes, abolishing the penny is worth considering. The melt value of a zinc penny is one-half of a cent. The only real muscle the electorate has is the vote. Several unsuccessful legislative efforts have sought to bring about the pennys extinction. Since 2006, Jarden has given $1.2 million to Americans for Common Cents (ACC). Dominic Townsend is a successful article author based in New York City. Authority to discontinue pennies rests with Congress and so far, that august body has been gripped by indecision as it ponders conflicting arguments by lobbying groups on both sides of the issue. In 2020, the penny debate gained new attention as the coronavirus pandemic led to a nationwide coin shortage. In theory, a single penny could be used for hundreds or thousands of transactions before it drops out of circulation. Unlike some other foreign governments, the penny remains legal tender in Canada. Supporters of the penny dont buy this argument. [1] Thats a bargain for how many times it gets used. March 10, 2016 Should we keep the penny or not? In 1965 the U.S. Mint stopped making 90% silver dimes, quarters, and half-dollars and changed them over to base metalcladversions. Most Americans want to keep the penny. Although these arguments aren't based on factual evidence, there is something to be said for keeping the penny around. However, other arguments are sentimental, having to do with the way people feel about the coin. Summary: Pennies are made of zinc and copper, and zinc can be harmful: Zinc mining and industrial use has negative . Cryptocurrencies provide users with an alternative form of money that is not controlled by any government or bank, but is instead based on blockchain technology. Maybe this is another consideration that the U.S. government should look at. [12], Pennies and nickels both cost more to make than their face values, but on average over the last five years, nickels have been made at a loss of 2.58 cents per coin, compared to .65 cents per penny. According to William Safire, in 1950 a penny would buy what a dime would buy today. Danielle DeLee began writing in 2010. Should the US government consider removing other coins from circulation as transactions become more digital? Ironically, getting rid of it might actually make it more difficult for people to donate money since fewer coins would be available. Furthermore, since crypto coins are divisible into smaller amounts than fiat currency, it would be easier for people to pay for items in exact amounts rather than rounding up or down to the nearest full denomination. For one thing, consumers benefit from having the penny. The bills, according to the Federal Reserve, cost only $0.155 to print, far less than their $5 face value. By clicking Accept All Cookies, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts. In 2017 it earned almost $400 million in profits producing circulating coins. Yes, the penny should stay in circulation as it is a reminder of our country's history and serves to keep the cost of goods low. 3. The debate over whether or not to get rid of the penny has been going on for years. If the penny is discontinued, then merchants must round all prices. To the average American, this is a perfect match: the common mans President on the common mans coin. Her areas of writing expertise include economic theory and applications, Russian culture and scuba diving. 10 reasons why we should keep the penny. If you have ten pennies for one reason or another, they will still be accepted and you can use them. The main pro-penny lobbying group is Americans for Common Cents, which represents Jarden Zinc, the company that makes the zinc and copper blanks from which pennies are produced. Should we keep the penny. Reduced coin usage linked to the pandemic has already had an impact. The problem was resolved by reducing the size of the cent and changing its composition from copper to an alloy of copper and nickel. Four decades ago, the Mint made more than 1.5 million prototype aluminum cents during a similar crisis, with every expectation they would soon see use in circulation. It's the $2 bill and it's the rarest small-denomination currency in circulation, representing about 1 percent of our money. In his spare time, Dominic enjoys running along the Hudson River and exploring the citys art galleries.He is also heavily involved in numerous charities and volunteer efforts throughout the city. We're Moving Away from Currency. Producing the penny costs taxpayers money: In 2021, each penny produced cost 2.10 cents to make and distribute. Now put it to work for your future. No, we can't, for some reason. It may or may not come as a surprise that it now costs the U.S. Mint almost two cents to make a penny and almost a . Although the cost for printing a dollar bill is about five cents, only lasts an average of eighteen months. They are good for societies that help with cancer, fundraiser, etc. It will be a lot easier just to keep the penny because then we don't have to tell everyone to change. And nickels cost 10 cents to make. The price of zinc, which currently composes 97.5 percent of a penny, has tripled over the past 15 years. Even the US Mint admits that the cost of producing a penny in 2007 could be as high as 1.4 cents. Because pennies are worth so little, theyre much heavier than any other coin in proportion to their value. Some are opposed to change, and others are attached to the penny for sentimental . No. Why or why not? Chipotle restaurants have already taken this initiative by simply rounding bills off to the nearest nickel, but when management decided to do this some customers complained about paying extra cents added on their bills.
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