A cent that, most of the time, goes unused. Another significant change in U.S. coinage occurred without any catastrophic effects on commerce. Source: Jeffrey Sparshott, The Penny Cost More to Make Than Its Worth, Again, Dec. 27, 2016, The US Mint shipped 8.4 billion pennies for circulation in 2017, more than all nickels (1.3 billion), dimes (2.4 billion), and quarters (1.9 billion) combined. Maybe this is another consideration that the U.S. government should look at. In Canada, at least, eliminating the penny has not led to a widespread increase in prices. From an economic standpoint, it simply doesn't make sense to continue producing these coins. Illustration: The Spruce /Danie Drankwalter. So long as most Americans remain attached to the penny whether their reasons are logical or not its unlikely that a bill to eliminate it will ever make it through Congress. Learn more about why the penny should be abolished. At no point did it rise above its historical average of 3.2%. Representative Jim Kolbe of Arizona sponsored a bill in February 2014 that President Barack Obama argued was a common-sense approach to reducing government waste. In 2010, it cost 1.67 cents to produce each penny. It was first authorized in 1776 to help fund the Revolution. Many detractors, tell me what a detractor is, argue that the penny costs more than its face value to . i think we should keep the penny so when our kids our older they will know what a penny is yaaaaaaaaaaaaaaaaaaaaaa. 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. Read more to learn about the potential benefits of eliminating the penny. There has been a growing debate on whether we should keep the penny or let it go. And if a single penny is useless, a whole bunch of pennies isnt much better. As debate continues on both sides, let's explore 8 reasons why we should keep or eliminate it. In addition, zinc is toxic in high doses and small amounts can contaminate water and soil in the area surrounding ore roll producing pennies. The people who make less than $35,000 dollars a year need pennies. Are culture would be forgotten shops prices . Abolish the Penny Essay - PHDessay.com Instance penny supporters claim that the penny still holds value and should be kept in circulation. The penny costs an irrational amount of money compared to what it's worth. This is the least substantive argument in favor of keeping the penny, and yet, ironically, its probably the most effective. Explain your answer(s). [ 34 ] 5. [34], 5. The change from brass, the previous composition, took place in 1982 as a cost-cutting measure because zinc was much cheaper than copper. Remember to focus on content rather than grammar or mechanics. And aluminum cents wouldnt be entirely new. The current cost for manufacturing a nickel is 7.29 cents per coin. 1. This question has been debated for years, with people arguing for and against its elimination. In 1996, the Government Accountability Office reported that roughly two-thirds of pennies dont circulate at all. There are plenty of DIY penny jewelry ideas out there, including a bracelet, a lucky penny necklace, and a bejeweled ring. His mission is to use his platform as an author to bring awareness and perspective on important issues affecting everyday life. So instead of penny drives, charities could start holding nickel drives, putting out bottles or wishing fountains to collect the new useless coins. The U.S. Mint does lose money on pennies and nickels. The typical store doesn't even have them available for purchase or give them out in change - they flat-out refuse! This could potentially have a big impact on charitable organizations that rely heavily on donations from their supporters. Most recently, in 2017, Senators John McCain (R-AZ) and Mike Enzi (R-WY) sponsored ultimately failed legislation that would have suspended minting of the penny. 9 "Centsible" Reasons to Get Rid of the Penny . 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. How would removing pennies impact people who primarily rely on cash transactions? Should We Make Cents? - CBS News It may even save money in production costs, as fewer pennies would need to be minted. Dont get rid of it! [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. 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? [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. A dollar coin can last up to forty years. Internal Revenue Service. Eliminating the penny would mean taking away a significant part of his legacy, which many people consider unacceptable. You're saving it. 9. Along with the zinc, the ores usually contain other metals, including toxic metals like cadmium and lead. 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. It takes a great deal of energy to produce pennies and according to the Environmental Protection Agency, it releases 107 million pounds of carbon dioxide (CO2) into the atmosphere every year while transporting them. All these toxic metals can contaminate water, soil, and plants in the area surrounding the mine. Making pennies wastes natural resources and is toxic to people and the environment - Pennies are 3 percent copper, and 97 percent zinc and are primarily made from virgin ore. Making pennies from . Should the US government consider removing other coins from circulation as transactions become more digital? Pennies don't buy as much as they used to: In 1913, a penny purchased a little more than a quarter does today (about 28 cents). However, while many people are calling for the pennys retirement, others are working just as hard to keep the coin in circulation. However, in recent years, there has been much debate about whether or not we . 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. First of all, if the U.S. Mint stops producing pennies, they wont simply lose their value overnight. Dominic is passionate about writing stories that have the power to make a difference in peoples lives.He believes that knowledge is key to understanding and progress, which he strives to bring to his readers through his work. The U.S. One Cent coin, or penny, has almost no purchasing power today. For instance, penny supporters claim that eliminating the coin could harm the economy or hamper charities in their fundraising efforts. But if we get rid of the penny we would have to stick with the nickel. There are multiple upsides as well as downsides to America discontinuing minting the penny. The penny-pinching . However, it would hit low-income Americans especially hard. News sources such as NPR began speculating whether the penny would finally be retired or if crypto possibilities might replace it. Americans for Common Cents: The Penny's Importance For Charity, Foldvary Says Keep the Penny; Dump the Sales Tax, US Mint Cost to Produce the Penny and Nickel, Americans for Common Cents: Support for the Penny. Since then, the U.S. Mint has issued several hundred billion Lincoln pennies, making this the most heavily produced coin in human history. Most Americans want to keep the penny. 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. If we keep the penny prices will go up to five cents. Most US coins have an expected circulation life of 20 to 30 years, meaning a single penny could be used thousands or even millions of times. November 29, 2022; did jesus walk on water before or after his resurrection . [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. Americans were wary of underweight coins at that time, so the government decreed that all U.S. coins even copper coins must contain enough metal to be worth very nearly as much intrinsically as their monetary face value. Several Chipotle restaurants tried this in 2012, but customers who had extra cents added to their bills complained. Without pennies, the Mint would be forced to make more five-cent pieces. Supporters of the penny point to all-cash transactions as a reason why it should remain in circulation. We also share information about your use of our site with our social media, advertising and analytics partners. 10 reasons why we should keep the penny - look.perfil.com Some of the arguments for keeping the penny are practical ones. Susan Headley is a well-respected coin collecting expert and writer with over 30 years of hands-on numismatic experience. 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. The cost of making pennies in 2019 was 1.99 cents per coin. 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 . Shops' reluctance to accept cash payments, coins included, has disempowered people experiencing homelessness, who often don . More recently, the mint changed the cupro-nickel clad dollar coin (the Susan B. Anthony) to the "golden dollar" type used in theSacagaweaandPresidential Dollartypes. The decision to discontinue it would incur political backlash. But others have a vested interest in keeping the penny alive. Dimes cost less than $0.04 to make, so the Mint could produce more of those without losing money. Should you need such advice, consult a licensed financial or tax advisor. Former Representative Jim Kolbe of Arizona sponsored two bills in Congress to eliminate the penny. It will be a lot easier just to keep the penny because then we don't have to tell everyone to change. It would also cause prices to rise. Perhaps the main issue is that some of the major opponents to getting rid of the penny are the producers of coin blanks and the U.S. zinc lobby -- the groups that profit from the production of the penny. 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. 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. A $7.12 bill would be $7.10, so if you have that dime, you still don't have to break a dollar. Rather than drop the practice completely, however, the stores decided to simply round all bills down to the nearest $0.05 instead. 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. But whether or not you believe picking up that penny will bring you luck, one thing it definitely wont bring you is wealth. References to products, offers, and rates from third party sites often change. There are reasons for the elimination of the penny, mostly having to do with the inconvenience of the small coin. For every dollar's worth of coins it shipped out the Mint made 45 . Removing the penny would save taxpayers money and reduce unnecessary waste. The pro-penny group backs up its claim by pointing to the work of economist Raymond Lombra. Additionally, the United States Mint changed the silver composition and weight of many coins due to the increasing price of silver. In 2006, New Zealand eliminated the nickel, and while they were at it, they significantly shrunk down the rest of the coins. The penny was first minted in 1857. You have it. As the U.S. Mint explains, the copper surface of a penny accounts for only 2.5% of its metal content. A few people groused about it, but commerce continued unabated. [15], Common Cents, a nonprofit based in Dallas, TX, has run a Pennies from the Heart program for 20 years, and the student-led efforts have raised over $850,000 for local charities. 5. Keeping the penny eliminating the penny reflect - Course Hero In 2010, it cost 1.67 cents to produce each penny. What Is a Financial Statement Restatement? Whatever the rationale, 58 percent of men and 73 percent of women wanted to keep the penny in 2006, according to a Coinstar poll. 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. American Numismatic Association The U.S. Mint reports that it costs nearly 1.6 cents to product one single cent (Grenoble, 2013). It also says there are "many reasons to believe" that time spent at the register could actually increase, rather than decrease, if pennies are eliminated. Americans have a love-hate relationship with pennies. All of this numismatic change took place without any significant problems. Less than forty years later, the mint reduced the weight to 2.67 g and used a composition of 90% silver. Both sides in the penny debate make some good points, and the solution is far from being an easy decision. You don't want to lose it. If only cash transactions are affected, then electronic transactions will continue to deliver more sensitive data. That adds up to a loss of over $61 million for that year alone. What Are Elastic, Unitary and Inelastic How to Approach Change in an Organization. Essay on Why Should We Use Pennies - 554 Words | Bartleby The Pros And Cons Of Abolishing The Penny | ipl.org The mint produces billions of these coins every year. We can not guarantee its completeness or reliability so please use caution. This change was likely an attempt to cut costs further as the cost of copper had risen again by this time. Why or why not? These coins have become highly sought-after collectibles and in 2010 one sold for $1.7 million - a record amount paid for a 1943 copper cent! Copyright 2023 AMAC, Inc. / AMAC Senior Resources Network. 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). Accessed Oct. 21, 2020. 10 reasons why we should keep the penny . -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. Copper, which makes up the other 2.5 . To anti-penny advocates, thats a lot of costs for a coin that cant even buy a piece of gum anymore. First, consumers benefit with a low denomination coin. Benefits of Keeping the Penny | Bizfluent Economist Greg Mankiw of Harvard University argues that pennies are simply no longer useful as a means of exchange: When people start leaving a monetary unit at the cash register for the next customer, the unit is too small to be useful.. Common Cents, an organization devoted to keeping the penny, runs an annual Penny Harvest and supports the penny largely because of its importance to charities. Why We Should Kill the American Penny | PBS NewsHour In 1959, the 150th anniversary of Lincolns birth, this wheat-ears reverse gave way to a likeness of the Lincoln Memorial. [9]. The penny should be abolished because it costs more to produce than it is worth . 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. 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. 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. [11] In 2009, the Leukemia and Lymphoma Society announced that school children had collected over 15 billion pennies in support of its charitable work thats $150 million dollars for blood cancer research and treatment. That would cost an estimated $10.9 million more annually than it would cost to keep making pennies. Why America Should Get Rid of the Penny - Ontopwiki Learn all you need to know about United Airlines seat selection - tips and tricks to get the best deal and a comfortable flight every time. See Details. MAKE JEWELRY. The army don't think we even need the penny because it too heavy to travel. [17], You cant buy anything for a penny; vending machines and parking meters wont accept them. To begin with, the Mint itself cant impose such a death penalty. That makes them a much more cost-effective way to honor Lincoln than a penny that costs $0.018 to mint. The cent has served the nation well since then, and many Americans view it with affection a sentiment that has grown even stronger since the coin began featuring the likeness of Abraham Lincoln in 1909. In 1962, it removed tin from the alloy, changing it from bronze to brass. Politics latest updates: NHS 'on the brink' says nursing union; 10% Chicago, Illinois 60654 USA, Natalie Leppard The folks who want to retire the penny also have some compelling arguments, including those below. One of the functions of prices is to provide participants in the economy with information about the scarcity, supply and demand for a particular good. Low rated: 2. However, new initiatives are being proposed to make the penny more efficient - read more to find out how! List two to three ways. ], ProCon.org, "Should the Penny Stay in Circulation? "Should the Penny Stay in Circulation? Unlike its hefty predecessor, it had much less value as metal than as money. Pennies are worth so little now that by taking five seconds to pick one up, youre earning just $7.20 an hour less than the federal minimum wage. They are good for societies that help with cancer, fundraiser, etc. Finally, small-change drives arent a cost-effective way for charities to raise funds. Producing the penny costs taxpayers money: In 2021, each penny produced cost 2.10 cents to make and distribute. The general rarity of the $2 bill is compounded by the fact that many people hoard them. Should We Get Rid of the Penny? - Scholastic All rights reserved. Should We Get Rid of the Penny? - Reasons to Keep It vs - YouTube TOP 10 10 reasons why we should keep the penny BEST and NEWEST No. A Dozen Money Facts You Should Know | Cheapism.com Keep or Get Rid of the Penny? 8 Reasons to Do Either 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. Last modified on July 2, 2018. A 2006 Coinstar poll found that 33 percent of American men and 22 percent of American women do not value spare change. 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. If more businesses follow Chipotles example and start rounding down their bills, their customers will find themselves with fewer pennies in their pockets. Second, once pennies drop out of circulation, the nickel will become the lowest-value coin cluttering up peoples pockets. The penny's diminishing role means that it may not be here for much longer - so get rid of those spare coins you have tossed around in your pocket! The group that conducted that survey Americans for Common Cents advocates retention of pennies, but impartial polls have come up with similar results. A nonpartisan organization called Citizens to Retire the U.S. Penny has attracted the support of economists from Harvard and Wake Forest University. If you try paying for something in a store with a fistful of pennies, you can expect dirty looks from both the clerk and the other customers if the store doesnt just flat-out refuse to take them. That will save Canadian taxpayers $11 million a year, our northern neighbors government reports. Mark Weller is ACC's executive director. 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. In Defense of the Penny - InsideSources How Much Does it Really Cost (the Planet) to Make a Penny? Top 3 Pros and Cons." One problem with this argument, according to penny proponents, is that if there were no pennies, the Mint would have to produce more nickels. Despite all the arguments for retiring the penny, the majority of Americans are in favor of keeping it. For these types of payments, rounding to the nearest nickel would cost consumers an extra 2021 dollars annually. )," YouTube.com, Sep. 6, 2010, Greg Mankiw, "Get Rid of the Penny!," gregmankiw.blogspot.com, Apr. In the rare case you have never heard of or used a penny, it is the one cent coin in U.S. The reason that we should continue the production of pennies is because the citizens of the United States do not deserve more change than is needed. Their reasons differ. Vending machines dont accept them, and neither do most parking meters. (6) The penny has become useless as a means of exchange. Even so, according to the US Mint, it costs about 2.4 cents to make one penny. In 2009, four different cents were issued with images representing key segments of Lincolns life. Since the penny costs 0.26 more than face value to Although the cost for printing a dollar bill is about five cents, only lasts an average of eighteen months. At a time when federal spending is under intense scrutiny, this strong public support seems somewhat surprising, for analysts say it now costs the U.S. Mint two cents double face value to make a single penny. 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. It takes energy to extract the zinc from the ore, roll it out, stamp it into coins, and transport the coins to banks. In 1792, Congress created a national mint authorized to make gold, silver, and copper coins, including the one-cent piece known as the penny. And in 1982, it virtually reversed the percentages of zinc and copper, in the process reducing the weight of the coin to its present 2.5 grams. Want to learn more? 7 Reasons to Get Rid of the PennyIt's a Money Loser for the Government. Opinion | The penny should be eliminated | Opinion | breezejmu.org Why or why not? A 2019 poll by Americans for Common Cents found even stronger numbers in favor of pennies, saying 68% of adults want to see the penny remain legal tender. The penny may be worthless, but let's keep it anyway Producing the penny costs taxpayers money: In 2021, each penny produced cost 2.10 cents to make and distribute. To learn more, read our article on the possible economic impact of eliminating the penny.
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