Keeping the Penny. Charities rely on penny drives as an easy way to raise funds, and pro-penny groups argue that the elimination of the coin would have a negative impact on charitable donations. Producing pennies also uses a great deal of energy. 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. In addition, zinc is toxic in high doses and small amounts can contaminate water and soil in the area surrounding ore roll producing pennies. Many detractors, tell me what a detractor is, argue that the penny costs more than its face value to . Numerous Americans are in favor of keeping it due to sentimental value, while others say it is just too costly. The United States mint stopped minting pennies for general circulation after 2013 but cash transactions still make up less than 8% of all payments while credit and debit cards, as well as old-fashioned checks are used more often now than ever before according to Trading Economics. All rights reserved. There are reasons for the elimination of the penny, mostly having to do with the inconvenience of the small coin. 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. 7 Reasons to Get Rid of the PennyIt's a Money Loser for the Government. 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. Most Americans want to keep the penny. In 1996, the Government Accountability Office reported that roughly two-thirds of pennies dont circulate at all. But if we get rid of the penny we would have to stick with the nickel. In 2017, Senators John McCain and Mike Enzi introduced S.759 Currency Optimization, Innovation and National Savings (or C.O.I.N.S.) Why the UK should get rid of 1p and 2p coins - The Conversation 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. [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. This cost includes the metal content and the labor used to produce them. They dropped the penny and rounding happens just the way you learned in like 2nd grade. However, it doesnt say what those reasons are. If we keep the penny prices will go up to five cents. The price of zinc, which currently composes 97.5 percent of a penny, has tripled over the past 15 years. All rights reserved. Hey we should because it would be very hard to get a sense even through really more people took it away you want to get one sent back you just keep the money back horrible, get rid of the penny its a worthless coin and costs more than its worth to make, Not really he has a point that it does cost more to make. You have it. In recent years, a debate on whether or not America should keep the penny has arisen. 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. However, in recent years, there has been much debate about whether or not we . "Microcap Stock: A Guide for Investors." In June of this year, New York Times op-ed columnist William Safire wrote an article calling for the elimination of the penny. A zinc penny weighs 2.5 g. Doing the math, 327 billion pennies weigh 1.8 billion pounds However, it would hit low-income Americans especially hard. In his spare time, Dominic enjoys running along the Hudson River and exploring the citys art galleries. 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. A nonpartisan organization called Citizens for Retiring the Penny, founded by students at Wake Forest University in 2006, supports eliminating it from circulation. You don't have to be a mathematician or an economist to conclude that it costs nearly two pennies to make one penny. The use of cryptocurrency for small payments such as the penny could revolutionize how people manage their finances, allowing them to make quick, secure purchases without worrying about currency conversion rates or transaction fees. 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. 30, 2012, Army & Air Force Exchange Service, "Retail & General FAQs," aafes.com (accessed July 2, 2018), David Kestenbaum, "What Is Seigniorage?," npr.org, Jan. 9, 2009, Business Wire, "Strong Support for the Penny in Recent Poll," businesswire.com, Apr. Their reasons differ. Eventually, this reduced demand will result in fewer pennies being minted each year. Remember, pennies cost 2 more than how much their worth, while nickels cost 5 more than the nickel is worth. What Is a Financial Statement Restatement? The Mint made nearly 6 billion pennies in 2012 and lost a cent on every single one of them. However, a newer study by economist Robert Whaples, published by the Eastern Economic Journal in 2007, contradicts Lombras findings. 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. Some say the United States should stop using pennies because the cost of producing the coin is now higher than the value of the coin. The composition of the coins consisted of an outer shell made out of 75% copper and 25% nickel bonded to a core of pure copper. Want to learn more? The problem is, too many believe the present administration and government in D.C. is reasonable, when its actually FUBAR. The penny costs an irrational amount of money compared to what it's worth. 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. 327 views, 5 likes, 2 loves, 11 comments, 2 shares, Facebook Watch Videos from Mount Carmel Baptist Church: Join us as we send off our beloved brother in Christ Brother Carlton Pinney. It will be a lot easier just to keep the penny because then we don't have to tell everyone to change. People will start rounding up to five cents. So instead of penny drives, charities could start holding nickel drives, putting out bottles or wishing fountains to collect the new useless coins. 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. Americans Oppose Abolishing the Penny," theharrispoll.com, Sep. 22, 2015, US Department of the Treasury, "Resource Center: Denominations," treasury.gov, June 15, 2018, John McCain, "Senators John Mccain & Mike Enzi Reintroduce the Coins Act to Save Billions in Taxpayer Dollars," mccain.senate.gov, Mar. Producing the penny costs taxpayers money: In 2021, each penny produced cost 2.10 cents to make and distribute. When people start leaving a monetary unit at the cash register for the next customer, the unit is too small to be useful. [19] Former US Mint Director Philip Diehl said, [T]he value of a penny has shrunk to the point that, if you earn more than the minimum wage, youre losing money stopping and picking up a penny on the sidewalk. [20], Comedian John Oliver noted, Two percent of Americans admitted to regularly throwing pennies in the garbage, which means the US Mint is spending millions to make garbage. [21] Two-thirds of the billions of pennies produced are never seen in circulation again once they reach a consumer via the bank. Should We Make Cents? - CBS News Many people thought that 2009, the 100th anniversary of the Lincoln cent, should have been the last year of penny manufacture. Last modified on July 2, 2018. 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 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. [18] Harvard economist Greg Mankiw stated, The purpose of the monetary system is to facilitate exchange. Overall, continuing the use and manufacturing of pennies . November 29, 2022; did jesus walk on water before or after his resurrection . [23], Making pennies also has environmental consequences from mining and transportation. ProCon.org is the institutional or organization author for all ProCon.org pages. Please refer to the appropriate style manual or other sources if you have any questions. In response, some penny charities started holding nickel drives instead of penny ones, putting their faith in wishing fountains that accept useless coins. 9. Eliminating the penny would mean taking away a significant part of his legacy, which many people consider unacceptable. Considering all these factors, dispassionate observers might wonder why the powers-that-be in Washington have been dragging their feet for years on killing the cent, especially now that Canada has acted decisively and, it appears, successfully to carry out a similar execution. Last year, almost 60% of the coins that the U.S. Mint churned out were . This cost includes the metal content and the labor used to produce them. U.S. Securities and Exchange Commission. It's a Money Loser for Retailers. Both sides in the penny debate make some good points, and the solution is far from being an easy decision. Back in 1857, the U.S. Mint stopped producing half-cent coins which, according to the historical information calculator at MeasuringWorth.com, had a purchasing power of $0.15 in 2020 dollars. For the first 50 years, the Lincoln cents reverse displayed two sheafs of wheat framing the statement of value. The mint produces billions of these coins every year. None of these changes caused any significant problems in commerce. 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. All Rights Reserved. How Many Coins Are in a Regular Roll of Coins? For example, the mint made the first dime in 1796 that weighed 2.7 g and had 89.24% silver. [27], As a result of that extra time per transaction, the average citizen wastes 730 seconds a year (12 minutes) paying with pennies. 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. Should you need such advice, consult a licensed financial or tax advisor. Nickels cost even more to make - If we eliminate the penny, we will need more nickels in circulation. 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. 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. Learn how to protect yourself when the bank takes your car. 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. The $2 bill, however, might be making a comeback. In 1959, the 150th anniversary of Lincolns birth, this wheat-ears reverse gave way to a likeness of the Lincoln Memorial. There has been a growing debate on whether we should keep the penny or let it go. Some of the arguments for keeping the penny are practical ones. A Dozen Money Facts You Should Know | Cheapism.com "Penny Stock Rules." The problem with abolishing coins - BBC Worklife Former Representative Jim Kolbe of Arizona sponsored two bills in Congress to eliminate the penny. At the time it was eliminated, the useless halfpenny could buy as much as 15 pennies can today. Most Americans probably dont even realize that for more than 30 years, their pennies have been 97.5 percent zinc, with a thin copper plating to give them the illusion of being red cents with high copper content. Unlock the Ultimate Benefits with the United 1K Guide! Summary: Pennies are made of zinc and copper, and zinc can be harmful: Zinc mining and industrial use has negative . Why We Should Get Rid Of The Penny - The Odyssey Online In 1856, the weight was further reduced to 2.49 g. In 1873, the weight was increased to 2.50 g where it remained until silver was eliminated from all coins in 1965. 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. 1. In theory, a single penny could be used for hundreds or thousands of transactions before it drops out of circulation. The 2020 annual report also states that the mint shipped 8 billion coins last year, most of which were nickels and quarters; dimes still put into circulation cost only 6 cents each to make. I will now list them and also describe them. Should the Penny Stay in Circulation? - Top 3 Pros and Cons - ProCon.org The answer, for a variety of reasons, is a resounding "yes.". Americans have a love-hate relationship with pennies. And aluminum cents wouldnt be entirely new. It cost 2.4 cents to make the penny. In 2020, the penny debate gained new attention as the coronavirus pandemic led to a nationwide coin shortage. In fact, it costs almost a dime to make a nickel today. Unlike some other foreign governments, the penny remains legal tender in Canada. Read our guide on how to clean pennies. The penny should stay | Silver Chips Online But the price of copper receded, and plans for the change were dropped. Explain your answer(s). It's clear that the modern penny is no longer necessary in our financial system. 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. Eliminating pennies would save time at the point of purchase without hurting customers or businesses financially. The United States should get rid of the penny because it is people are not using them, cost to much, and other countries have already dropped the penny. In 2013 alone, this cost taxpayers $105 million. Are culture would be forgotten shops prices . There are multiple upsides as well as downsides to America discontinuing minting the penny. 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. This means that taxpayers are losing money every time the mint produces a penny. If Cash is No Longer King, What Does that Make Stupid Pennies? [22], At a total per unit cost of 1.82 cents, it costs nearly two pennies to make one penny. Charities such as the Leukemia and Lymphoma Society and Ronald McDonald House raise funds through penny drives, encouraging people to donate their unwanted pennies for important causes. If more businesses follow Chipotles example and start rounding down their bills, their customers will find themselves with fewer pennies in their pockets. Economist Robert Shapiro estimated in a 2017 paper that it costs 55 times more to make pennies than the value of each coin itself. He argues that there are three main reasons for keeping the penny: Without it, we would become more reliant on the . And in 2010, the Mint introduced a permanent new reverse depicting a Civil War-era Union shield. According to the U.S. Environmental Protection Agency, zinc ores contain only 3% to 11% metallic zinc. [24], Over the last 35 years, 107 million pounds of carbon dioxide have been emitted due to pennies being delivered from the Mint to banks. The cost of pennies is a minor problem. Push for the position and policies you support by writing US national senators and representatives. Removing the penny would save taxpayers money and reduce unnecessary waste. This change was likely an attempt to cut costs further as the cost of copper had risen again by this time. To the average American, this is a perfect match: the common mans President on the common mans coin. A $7.12 bill would be $7.10, so if you have that dime, you still don't have to break a dollar. At this rate, the United States loses millions of dollars producing pennies and nickels. The United States should continue the production of the penny. This is the least substantive argument in favor of keeping the penny, and yet, ironically, its probably the most effective. Currently there's no action being taken on the elimination of the penny. We can not guarantee its completeness or reliability so please use caution. Essay on Why Should We Use Pennies - 554 Words | Bartleby 4. Since the goal of any business is to make money, most prices would be rounded up, not . Chicago, Illinois 60654 USA, Natalie Leppard However, a newer study published in 2007 by economist Robert Whaples in the Eastern Economic Journal contradicts Lombra's findings. Should the US government consider removing other coins from circulation as transactions become more digital? 325 N. LaSalle Street, Suite 200 [14], Dagmar Serota, who created a nonprofit called Good Cents for Oakland, said, Pennies are easy to ask for and they are easy to give. Lombra did his careful analysis by simply looking at a convenience stores prices and assuming that each consumer would buy three items in one visit. The great debate at PAK: Keep the penny, abolish the penny This article was published on July 2, 2018, at Britannicas ProCon.org, a nonpartisan issue-information source. 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? With more consumers moving toward contactless payment methods, news sources from Fortune to NPR began asking: Is the penny finally on its way out? Will todays cent get the same kind of reprieve? Discover what happens, how to avoid it, and what you can do if it's too late. " THE PENNY DEBATE" written by Brad Andrews explains to the readers the important points and reasons on why we should keep the penny and important points and reasons as to why we should get rid of the penny. They come from mines in the earth zinc mines, mostly, because pennies are more than 97% zinc. 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. 9 " Centsible " Reasons to Get Rid of the Penny. ProCon.org. In fact, during that year the Mint accidentally made 40 copper pennies! Pennies are so hard to spend that many people dont even bother they just store them all in jars, or even throw them away. "IRA FAQs - Investments." The penny was first minted in 1857. For instance, penny supporters claim that eliminating the coin could harm the economy or hamper charities in their fundraising efforts. 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. According to the American Council on Health and Science, penny accounts for 2.4% of all coins produced annually in the US with metal content including zinc ores that are hazardous to environment when released. [5], Mark Weller, Executive Director of the pro-penny group Americans for Common Cents, says, The alternative to the penny is rounding to the nickel, and thats something that will negatively impact working families every time they buy a gallon of gas or a gallon of milk. [6], The US Federal Reserve found that minorities and low-income people are more likely to use cash than credit cards. 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. Ironically, getting rid of it might actually make it more difficult for people to donate money since fewer coins would be available. Pennies Argumentative Essay - 605 Words | Studymode Will a suitable substitute be found? There are many anti-penny advocates that scoff at its existence, arguing that it costs more to mint pennies than the coins are worth. However, it doesn't say what those reasons are. 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. How would removing pennies impact people who primarily rely on cash transactions? When the Baby Boomers were young, a penny still had some value. 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. That means the cost of some items would go up. Whether you are starting your first company or you are a dedicated entrepreneur diving into a new venture, Bizfluent is here to equip you with the tactics, tools and information to establish and run your ventures. Creating the penny releases C02 into the air. Should We Get Rid of the Penny? - Scholastic However, the fact that this poll was conducted by a pro-penny group suggests that the questions might be somewhat biased toward the pro-penny side. Why America should get rid of the penny? - Ufoscience.org The content on Money Crashers is for informational and educational purposes only and should not be construed as professional financial advice. Beyond the excess millions the U.S. Mint spends to crank them out, pennies also take up the lions share of the Mints production capacity. President Obama in his 2014 YouTube chat suggested that Americans are attached emotionally to the penny because it brings back happy childhood memories of saving pennies in piggy banks and seeing them eventually turn into dollars. Low rated: 2. The Pros And Cons Of Abolishing The Penny | ipl.org Since 2006, Jarden has given $1.2 million to Americans for Common Cents (ACC). However, overall, the Mint is a profit-making machine. E-Trade. 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. All these toxic metals can contaminate water, soil, and plants in the area surrounding the mine. It's a Money Loser for You. 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. The cost of making pennies in 2019 was 1.99 cents per coin. Why America Should Get Rid of the Penny - Ontopwiki While we do our best to keep these updated, numbers stated on this site may differ from actual numbers. Managing Editor Reason one as to why the penny should be eliminated because in today 's world nothing can be purchased with a penny. Although originally made of pure copper, pennies today are composed of 97.5% zinc and 2.5% copper. Pennies are so close to worthless that many people argue its time to do away with them altogether. This not only weighs down our pockets, but it also holds up the line while we mess around counting out coins.
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