The government accountability office reported in 2017 that roughly two-thirds of pennies dont circulate, meaning they are sitting in storage and losing their value over time. The penny costs an irrational amount of money compared to what it's worth. 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. For example, the zinc metals lobby, and the Coinstar company (who make those change-counting machines in the grocery store) will both fight hard to keep the penny in production. 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. At the G-8 summit next week, the Brits and the French -- even the French! A graduate of NYU, he has an MA in English literature and loves literature from all ages. Shops wouldn't get money from you and you can save up. It would also cause prices to rise. However, it could be biased because of the differences between segments of the population that pay electronically and with cash. It too had very little purchasing power at the end of its life. Nickels cost even more to make - If we eliminate the penny, we will need more nickels in circulation. Get Rid of Stupid Pennies," acsh.org, June 17, 2016, Mike's Bikes, "Pennies Don't Make 'Cents,'" mikesbikes.com (accessed July 2, 2018), Retire the Penny, "It Makes 'Cents,'" retirethepenny.org (accessed July 2, 2018), Sebastian Mallaby, "The Penny Stops Here," washingtonpost.com, Sep. 25, 2006, Greg Mankiw, "How to Make $1 Billion," gregmankiw.blogspot.com, Sep. 25, 2006, Consumer Affairs, "The Penny's End Is Near," consumeraffairs.com, July 2006, Courtney Waite, "The Origination of the Lincoln Penny," livinglincoln.web.unc.edu, Apr. There are precedents for getting rid of coins that are too small to use. NBC's Morgan Radford reports for Weeke. I personally think that we should keep pennies for these reasons. In 2009, four different cents were issued with images representing key segments of Lincolns life. For one thing, consumers benefit from having the penny. After all, we still need the coin for a number of reasons. Among other things, we may receive free products, services, and/or monetary compensation in exchange for featured placement of sponsored products or services. 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. Preserving the penny keeps consumer prices down and avoids harming low-income households. A pro-penny group funded by the zinc industry calls these claims absurd, as they argue employees would save more time spent counting change than people would necessarily spend if we got rid of them. Those who support getting rid of the penny argue that it is useless, inconvenient and takes up space that could be given to other denominations of currency. There's a downside to life without pennies. This not only weighs down our pockets, but it also holds up the line while we mess around counting out coins. Dominic Townsend is a successful article author based in New York City. Should we keep the penny. The Daily Iowan. 2022-11-18 Of course, spending $0.018 to make a coin thats worth only $0.01 isnt necessarily a bad idea because coins are reusable. "Open an IRA in 15 minutes." Vending machines dont accept them, and neither do most parking meters. Consumers using credit wouldnt be affected by this because their transactions could still be counted out to the cent. 10 reasons why we should keep the penny. You're saving it. That will save Canadian taxpayers $11 . Want to learn more? Using your figures, that would amount to about 1000 ounces of copper. 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. i think we should keep the penny so when our kids our older they will know what a penny is yaaaaaaaaaaaaaaaaaaaaaa. Americans have a love-hate relationship with pennies. 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! )," YouTube.com, Sep. 6, 2010, Greg Mankiw, "Get Rid of the Penny!," gregmankiw.blogspot.com, Apr. The debate over whether or not to get rid of the penny has been going on for years. The Department of Defense banned the use of pennies at overseas military bases in 1980 because the coins were deemed too heavy and not cost effective to ship. 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. The COVID-19 pandemic could accelerate this trend. ], ProCon.org, "Should the Penny Stay in Circulation? But since then, the cost of zinc has risen dramatically and thats a big reason the cost of making cents is now over the top. Some supporters of the penny point out that its the only coin bearing the image of Abraham Lincoln, probably our nations most revered president. However, 59% of adults polled between June 10 and June 16 of 2004 by Harris Interactive said that they . Some of the arguments for keeping the penny are practical ones. News sources such as NPR began speculating whether the penny would finally be retired or if crypto possibilities might replace it. Despite all the arguments for retiring the penny, the majority of Americans are in favor of keeping it. A Penny For Your Thoughts: Why Pennies Are Still Necessary [25] A California company called Mikes Bikes has banned the penny from its registers because Making pennies wastes natural resources [and] is toxic to people and the environment. [26], The use of pennies in paying for goods and making change adds time to sales transactions. A lot of pennies never get spent. 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. After 1962, pennies were no longer made of copper or bronze but instead were minted from 97.5% zinc with 2.5% copper coating. He is also heavily involved in numerous charities and volunteer efforts throughout the city. How Much Is My Modern Jefferson Nickel Worth. We're talking about those insignificant one cent pieces in your pocket or purse. However, the nickel is in just as bad a shape as the penny. Argumentative Essay: Keep The Penny | ipl.org - Internet Public Library The United States should continue the production of the penny. Anti-penny advocates are fond of pointing out that today, the penny costs taxpayers more to produce than its actually worth. 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. 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. Another significant change in U.S. coinage occurred without any catastrophic effects on commerce. Many people thought that 2009, the 100th anniversary of the Lincoln cent, should have been the last year of penny manufacture. Learn more about why the penny should be abolished. 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. More recently, the mint changed the cupro-nickel clad dollar coin (the Susan B. Anthony) to the "golden dollar" type used in theSacagaweaandPresidential Dollartypes. Pennies are still good but, many people think not. In fact, it costs almost a dime to make a nickel today. Since then, the U.S. Mint has issued several hundred billion Lincoln pennies, making this the most heavily produced coin in human history. American Numismatic Association Learn how to keep it safe. The general rarity of the $2 bill is compounded by the fact that many people hoard them. What Are Elastic, Unitary and Inelastic How to Approach Change in an Organization. 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. Additionally, the United States Mint changed the silver composition and weight of many coins due to the increasing price of silver. Should the US government consider removing other coins from circulation as transactions become more digital? Pennies are basically worth pennies today, and they consume vast quantities of natural resources to produce. Its the only coin we have that has Lincolns face on it! 9 Reasons Why America Should Get Rid of the Penny - The Balance November 29, 2022; did jesus walk on water before or after his resurrection . Penny's sentimental value proves priceless - Coppell Student Media Keep or Get Rid of the Penny? 8 Reasons to Do Either 2023 Money Crashers, LLC. While the one-cent, once-copper coin doesn't have the purchasing power it used to, Americans still have a hard time letting it go. Eliminating the penny would mean taking away a significant part of his legacy, which many people consider unacceptable. There will be no sanity in D.C., fiscal or otherwise, until a electoral majority recognizes there is a crisis and places people in office wholl effect a cure. However, new initiatives are being proposed to make the penny more efficient - read more to find out how! Should We Make Cents? - CBS News The penny has practically no value and should be taken out of circulation just as other coins have been in US history. 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. Even the US Mint admits that the cost of producing a penny in 2007 could be as high as 1.4 cents. If 77.1% of you voted to keep the penny in our 1st poll I bet we can . To pay the exact amount, we have to either hand over some pennies or receive some in change. 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. Susan also belongs to the American Numismatic Society (ANS) and CONECA (error and variety coins club).

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