"Microcap Stock: A Guide for Investors." 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!!!! [1] While countries such as Australia, Canada, and New Zealand have phased out their one-cent pieces, Harris Poll found that 55% of Americans are in favor of keeping the penny and 29% want to abolish it. Although debate continues today about whether we should get rid of the penny entirely or not, its long history is something worth noting and its clear that it has undergone some monumental changes over time from its composition to its patterns on both sides - which makes it an interesting part of our nations history. 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. Although originally made of pure copper, pennies today are composed of 97.5% zinc and 2.5% copper. Anti-penny advocates point to the 2020 annual report from the U.S. Mint, which states that it costs 1.7 cents to produce a single penny. Abraham Lincolns face replaced an image of Lady Liberty on the penny in 1909, the 100th anniversary of his birth, making him the first real person featured on a regular-issue American coin. In 1792, Congress created a national mint authorized to make gold, silver, and copper coins, including the one-cent piece known as the penny. The ubiquitous one-cent coin has been a part of our everyday lives for over two centuries - and some argue that it's time to get rid of it. The folks who want to retire the penny also have some compelling arguments, including those below. It cost 2.4 cents to make the penny. 22, 2006, Philip N. Diehl, "The Real Diehl: Its Time for the United States to Eliminate the One Cent Coin," coinweek.com, Jan. 28, 2015, Last Week Tonight, "Pennies: Last Week Tonight with John Oliver (HBO)," YouTube.com, Nov. 22, 2015, J. William Gadsby, "Future of the Penny: Options for Congressional Consideration," gao.gov, July 16, 1996, Aaron Klein, "Time for Change: Modernizing to the Dollar Coin Saves Taxpayers Billions," dollarcoinalliance.org, July 22, 2013, Michelle Z. Donahue, "How Much Does it Really Cost (the Planet) to Make a Penny?," smithsonianmag.com, May 18, 2016, Josh Bloom, "Want to Help the Environment? 1943 pennies were made out of a mixture of steel and copper, due to the war effort during World War II. 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. Removing the penny removes grades of information that could be available to investors, consumers and manufacturers. The army don't think we even need the penny because it too heavy to travel. In fact, it costs almost a dime to make a nickel today. However, it doesnt say what those reasons are. Aaron notes in his Brookings Institution editorial that eliminating both pennies and nickels would round off all cash transactions to the nearest $0.10, making for easier math and less stuff in our pockets.. Life Without Pennies. Why we should keep the penny. (5) The United States should follow the lead of other countries and discontinue the penny, because it is obsolete and costs more than it is worth. 10 Rarest and Most Valuable Coins in the World, Early Jefferson Nickel Values 1938 - 1964. [1] Thats a bargain for how many times it gets used. In 2020, the penny debate gained new attention as the coronavirus pandemic led to a nationwide coin shortage. Rather than drop the practice completely, however, the stores decided to simply round all bills down to the nearest $0.05 instead. Proponents of the penny argue that shopkeepers would tend to round up, increasing prices. [7] Raymond Lombra, Professor of Economics at Pennsylvania State University, says the extra rounding charges would exceed $600 million annually and would be regressive, affecting the poor and other disadvantaged people groups disproportionately. [9], One study found that penny rounding in Canada costs grocery store customers an estimated 3.27 million Canadian dollars (2.5 million USD) annually. The COVID-19 pandemic could accelerate this trend. Top 3 Pros and Cons,", ProCon.org, "Should the Penny Stay in Circulation? American Numismatic Association Aaron notes in a Brookings Institution editorial that eliminating pennies would help with cash transactions as well, since it would make calculations easier without having to deal with fractions of cents. Shops wouldn't get money from you and you can save up. Thus, it couldnt affect government expenditures or trigger widespread inflation. His mission is to use his platform as an author to bring awareness and perspective on important issues affecting everyday life. In Canada, at least, eliminating the penny has not led to a widespread increase in prices. Analyze the pro argument of Mark Weller from Americans for Common Cents. Should We Get Rid Of The Penny? | TODAY - YouTube A $7.12 bill would be $7.10, so if you have that dime, you still don't have to break a dollar. How Much Does it Really Cost (the Planet) to Make a Penny? The content on Money Crashers is for informational and educational purposes only and should not be construed as professional financial advice. Some Hope Not," nytimes.com, July 29, 2020. The primary reason is the soaring cost of metals. "Open an IRA in 15 minutes." Make sure you have some later too. All of this numismatic change took place without any significant problems. Amy Livingston is a freelance writer who can actually answer yes to the question, "And from that you make a living?" In 2013, Aaron wrote an anti-penny screed pointing out that it costs more to make a penny than its face value - 1.8 cents each - and therefore it is not cost-effective. From an economic standpoint, it simply doesn't make sense to continue producing these coins. All rights reserved. He is also heavily involved in numerous charities and volunteer efforts throughout the city. If only cash transactions are affected, then electronic transactions will continue to deliver more sensitive data. Its possible that what happens to the penny could end up depending not on the law, but on decisions made by businesses. It's a Money Loser for You. [4] Several unsuccessful legislative efforts have sought to bring about the pennys extinction. The US Mint produces coins as instructed byCongress, so a law would have to be passed by Congress and signed by the President in order for pennies to be removed from circulation. Pennies don't last forever, and the US Mint explains that the copper surface can corrode away after a few years. This is why anti-penny advocates argue that its a bad idea to keep making them when the mint loses money doing so, while other coins like nickels cost less to make but have higher value. Another significant change in U.S. coinage occurred without any catastrophic effects on commerce. CGAA will not be liable for any losses and/or damages incurred with the use of the information provided. 9 "Centsible" Reasons to Get Rid of the Penny . According to CNN, the Mint has researched the possibility of making pennies from cheaper materials, but it could not find a way to bring the cost of producing them below their face value. Copyright 2023 AMAC, Inc. / AMAC Senior Resources Network. The United States Mint makes over 20,000,000 pennies per day, or 7,000,000,000 pennies per year. This means that taxpayers are losing money every time the mint produces a penny. Economist Henry Aaron of the Brookings Institution, a nonprofit research group, reminisces in a 2013 anti-penny screed about paying a nickel for an ice cream cone as a boy. Pro and Con: Pennies | Britannica The Penny Should Abolish The Penny. Copper, which makes up the other 2.5 . Steel and aluminum are two alternative metals that have been mentioned. If Cash is No Longer King, What Does that Make Stupid Pennies? The cost of pennies is a minor problem. According to William Safire, in 1950 a penny would buy what a dime would buy today. The cost of producing them is higher than face value. Vending machines dont accept them, and neither do most parking meters. As debate continues on both sides, let's explore 8 reasons why we should keep or eliminate it. Reduced coin usage linked to the pandemic has already had an impact. In response, some penny charities started holding nickel drives instead of penny ones, putting their faith in wishing fountains that accept useless coins. Jarden and the zinc industry are fighting to keep the penny. Both sides in the penny debate make some good points, and the solution is far from being an easy decision. Halting production of the coin is becoming a more and more popular topic among anti-penny advocates. In 2021, the Mint made 7.60 billion pennies, costing taxpayers $145.8 million. Producing the penny costs taxpayers money: In 2021, each penny produced cost 2.10 cents to make and distribute. At the direction of Congress, the Mint has been studying potential new compositions that would make the coin cheaper to produce and save the denomination from the scrap heap. Even automatic toll booths wont take them except in Illinois, the home state of President Abraham Lincoln, whose face adorns the coin. Many anti-penny advocates think the ideal solution to this problem is to eliminate the nickel as well, making the dime the smallest coin in circulation. Nickels cost 7.7 cents to make, (2.7 cents over face value, as opposed to 0.26 cents over face value to make a penny,) so making each nickel costs 1.44 cents more than making each penny. A 2015 Harris poll shows that 51% of Americans favor keeping the penny, while just 29% think we should eliminate it. "Current Market." For obvious reasons, pressure to keep the cent has been applied persistently by providers of zinc and copper, the two component metals in the coin, who would lose contracts worth tens of millions of dollars every year if pennies were abolished. 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. 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. Despite what the old song says, pennies dont really come from heaven. 7 Reasons to Get Rid of the Penny | The Saturday Evening Post It takes a lot of time for volunteers to pick up, clean, sort, and count all those coins, and the more pennies there are in the mix, the less value the charity gets for each coin it handles. The debate over whether to keep the penny or discontinue it has intensified since the penny crossed the line of one-cent production cost per penny. People who get them in change during the day often dump them in mayonnaise jars, sugar bowls or drawers when they empty their pockets at night. How To Keep A Penny Essay - 473 Words | Cram We use cookies to personalise content and ads, to provide social media features and to analyse our traffic. 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. Managing Editor We Won't Forget President Lincoln. 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. The discontinuation of the penny would require significant turnover. [9]. 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. Commerce continued without any major hiccups, even though the one-cent copper coin suddenly shrunk from a hefty, over an inch in diameter piece of copper that weighed almost 11 grams, to a penny that was less than half the weight and 40% smaller. Theyre so hard to use that they end up stuffed in jars or abandoned on sidewalks. See Details. And just five years after that, in 1864, the government changed the coins content again this time to bronze, an alloy of copper, tin and zinc and slenderized it further to 3.11 grams, a weight that remained unchanged until 1982. 10 reasons why we should keep the penny - theflowerfall.com Second, once pennies drop out of circulation, the nickel will become the lowest-value coin cluttering up peoples pockets. Not only do they cost money to make, but they don't buy much anymore - you can't even buy gum with them! U.S. Securities and Exchange Commission. The melt value of pennies ranges from more than two cents for thepre-1982 copper pennies, to nearly a full cent for the copper-plated zinc pennies. Later, in 1944, the Mint switched to making pennies out of zinc-bronze alloy. However, it is removed from circulation when tendered at a Canadian banking facility. And its very easy for a child to say, Will you help me support this nonprofit, will you give me your pennies? [6] Elementary school students in Los Angeles, CA, gain significant leadership and civic engagement experience from USCs Penny Harvest program by choosing how to donate the money they raise. 10 reasons why we should keep the penny. According to an old superstition, its good luck to find a penny on the sidewalk. In 2009, four different cents were issued with images representing key segments of Lincolns life. Their reasons differ. However, while many people are calling for the pennys retirement, others are working just as hard to keep the coin in circulation. In 1965 the U.S. Mint stopped making 90% silver dimes, quarters, and half-dollars and changed them over to base metalcladversions. Explain your answer(s). Most Americans want to keep the penny. The reason why is obvious. In response to this Youtube chat, members of Common Cents, a main pro-penny lobbying group which represents Jarden Zinc Products (a major producer of copper blanks used to mint coins) conducted polls showing that most Americans favor keeping the penny. Please refer to the appropriate style manual or other sources if you have any questions. Additionally, the United States Mint changed the silver composition and weight of many coins due to the increasing price of silver. Why We Should Kill the American Penny | PBS NewsHour In 2017, Senators John McCain and Mike Enzi introduced S.759 Currency Optimization, Innovation and National Savings (or C.O.I.N.S.) Creating the penny releases C02 into the air. The group's mission is to keep the penny in use. In 2010, it cost 1.67 cents to produce each penny. Economist Greg Mankiw of Harvard University argues that if people start leaving pennies at cash registers due to their lack of purchasing power (in 2020 dollars, 15 pennies would be worth one monetary unit), then maybe then the useless halfpenny will finally be stamped out too. Proponents of the penny argue that this small change could be felt most strongly by low-income Americans and according to a CNBC survey, nearly half of adults agree. Or will the Law of Supply and Demand keep putting upward pressure on metal prices and make it impractical to keep producing cents of any kind? Report this Content. This question has been debated for years, with people arguing for and against its elimination. 8 Reasons to Keep It vs Eliminate It," moneycrashers.com (accessed July 2, 2018), Rodney J. Bosco and Kevin M. Davis, "Impact of Eliminating the Penny on the United States Mint's Costs and Profit in Fiscal Year 2011," pennies.org, Apr. Nickels also cost more to make than their face value about $0.07 apiece so the Mint loses even more money on each nickel it produces than it does on each penny. If you pay with credit or debit card, it is $7.12. Numerous Americans are in favor of keeping it due to sentimental value, while others say it is just too costly. Dimes cost less than $0.04 to make, so the Mint could produce more of those without losing money. A zinc penny weighs 2.5 g. Doing the math, 327 billion pennies weigh 1.8 billion pounds -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. Additionally, cryptocurrency transactions are incredibly fast and secure, making them ideal for day-to-day payments. Unlike its hefty predecessor, it had much less value as metal than as money. 9 " Centsible " Reasons to Get Rid of the Penny. Should We Get Rid of the Penny? - 8 Reasons to Keep It vs Eliminate It If that is the case, then people would be less willing to part with spare change for charitable drives. [36], 6. Pennies are so hard to spend that many people dont even bother they just store them all in jars, or even throw them away. That's why last December, Congress directed the United States Mint to nd ways to produce our coins more cost-effectively. Although these arguments aren't based on factual evidence, there is something to be said for keeping the penny around. Baby boomers may nostalgically reminisce of a time when the penny was king, but economist Henry Aaron of the Brookings Institution and other nonprofit research groups argue that the penny's time has come and gone. In 1959, the 150th anniversary of Lincolns birth, this wheat-ears reverse gave way to a likeness of the Lincoln Memorial. Anti-penny advocates are fond of pointing out that today, the penny costs taxpayers more to produce than its actually worth. Several unsuccessful legislative efforts have sought to bring about the pennys extinction. 2. The penny has increased to 7.6 million dollars a year to make a penny. There has been a growing debate on whether we should keep the penny or let it go. The people who make less than $35,000 dollars a year need pennies. Shopkeepers would have to either change the prices on all of the items in their inventories or reprogram registers to round automatically when an item is charged. However, 59% of adults polled between June 10 and June 16 of 2004 by Harris Interactive said that they . The Penny Debate: to Keep or not to Keep - Free Essay Example - Edubirdie Those who oppose keeping the penny say it's not likely that we will identify new ways to bring down the cost of manufacturing pennies. Should We Get Rid of the Penny? - Scholastic so at 27 cents per ounce, I am going to have about $270 in value. [10][11] So what if it costs 1.8 cents to make? A cent that, most of the time, goes unused. In addition, zinc itself, although necessary in small amounts, is harmful in high doses to both humans and animals. History has shown us that updating the monetary supply in countries where the currency is very stable has had little if any adverse effect on the economy, or people's acceptance of the coinage. Former Representative Jim Kolbe of Arizona sponsored two bills in Congress to eliminate the penny. Accessed Oct. 21, 2020. A few people groused about it, but commerce continued unabated. We strive to write accurate and genuine reviews and articles, and all views and opinions expressed are solely those of the authors. And nickels cost 10 cents to make. The debate over whether or not to get rid of the penny has been going on for years. In Grey's video, he notes that in 2006, even with pennies only 5 percent copper and 95 percent zinc, "the value of copper rose to more than the value of the penny, meaning they were worth more . He has written for many top publications, such as The New Yorker, Huffington Post, and The Wall Street Journal. shutterstock.com Around 8% of coppers are thrown in the bin every year. Aaron's argument resonates with many modern consumers who remember when a person could buy a mini Tootsie Roll, Mary Jane or ice cream cone at the candy store with just one penny. There's a downside to life without pennies. But penny opponents point out that even if the Mint stops producing pennies, charities won't simply lose out - they'll gradually be pulled away as stores stop accepting pennies and consumers switch to other coins. Should we get rid of the penny? The very fact that pennies have so little value makes them useful to charities because people are happy to give them away. The penny is an essential part of our nation's monetary system, and it helps to keep commerce flowing smoothly. Also the United States loses 1.8 cents for every penny being made. [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. 5. While we do our best to keep these updated, numbers stated on this site may differ from actual numbers. All rights reserved. Currently, the cost to make a penny is around 1.82 cents. Or should the U.S. keep it's smallest coin? News sources such as NPR began speculating whether the penny would finally be retired or if crypto possibilities might replace it. 29, 2017, Andrew Stelzer, "Phasing out Pennies in a Bid for Change," npr.org, Nov. 29, 2009, Shaun O'Brien, "Consumer Preferences and the Use of Cash: Evidence from the Diary of Consumer Payments Choice Working Paper," frbsf.org, June 2014, Raymond E. Lombra, "Eliminating the Penny from the U.S. Coinage System: An Economic Analysis," Eastern Economic Journal, Fall 2001, Vancouver School of Economics, "Penny Rounding Profitable for Canadian Grocers: UBC VSE Student Research," economics.ubc.ca, Nov. 16, 2017, Reuters, "Pennies: The Throwaway Coins We Can't Let Go Of," latimes.com, May 31, 1994, Amy Livingston, "Should We Get Rid of the Penny? 2023 Money Crashers, LLC. Penny's sentimental value proves priceless - Coppell Student Media PDF The Penny Debate - Should We Keep the Penny or Get Rid of It? 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. However, this only works if the coins actually do circulate and pennies, as noted above, often dont. Should We Get Rid of the Penny? | Jay Zagorsky's Research & Blog - U.OSU The Canadian government stopped producing pennies in May 2012, and the Royal Canadian Mint ceased the distribution of them as of February 4, 2013. It doesnt matter. Once the timer stops, you can always click . Learn how to protect yourself when the bank takes your car. 1. Why America Should Get Rid of the Penny - Ontopwiki Millions of consumers also oppose the cents elimination on economic grounds. The problem is, too many believe the present administration and government in D.C. is reasonable, when its actually FUBAR. 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. Can We All Just Agree That Pennies Are Stupid And Need To Be - HuffPost Removing the penny would save taxpayers money and reduce unnecessary waste. Whaples, by contrast, analyzed actual data from more than 200,000 convenience-store transactions in seven states. The penny has practically no value and should be taken out of circulation just as other coins have been in US history. We're Moving Away from Currency. The price of zinc has soared over the course of the last few years, and with that the price to produce the penny has gone up. This cost includes the metal content and the labor used to produce them. Low rated: 2. Convenience stores across the nation have been showing how handling pennies adds up in cash transactions, but that doesn't sound like a huge issue until you look into the 2019 Federal Reserve study that shows the average consumer makes 11 cash transactions in one week. The C.O.I.N.S. [2][3], The US Mint produces coins as instructed by Congress, so a law would have to be passed by Congress and signed by the President in order for pennies to be removed from circulation. And as it grows ever easier for charities to accept donations electronically, coin drives are likely to play a diminishing role in fundraising. To pay the exact amount, we have to either hand over some pennies or receive some in change. Pennies Argumentative Essay - 605 Words | Studymode For every dollar's worth of coins it shipped out the Mint made 45 . Any action you take based on the information found on cgaa.org is strictly at your discretion. It too had very little purchasing power at the end of its life.
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