It's clear that the modern penny is no longer necessary in our financial system. Second, once pennies drop out of circulation, the nickel will become the lowest-value coin cluttering up peoples pockets. In the rare case you have never heard of or used a penny, it is the one cent coin in U.S. However, it could be biased because of the differences between segments of the population that pay electronically and with cash. 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. "Open an IRA in 15 minutes." 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? [27], As a result of that extra time per transaction, the average citizen wastes 730 seconds a year (12 minutes) paying with pennies. Should we keep the penny. 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. Despite all the arguments for retiring the penny, the majority of Americans are in favor of keeping it. Finally, small-change drives aren't always enough to raise funds - clean sorting and counting are required before any money can be collected, and many organizations are now accepting donations electronically over coin drives for this reason. Essay on Why Should We Use Pennies - 554 Words | Bartleby 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. 4. Why we should keep the penny. A penny can be used for decades and is more cost-efficient to produce than a nickel. 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. The C.O.I.N.S. Accessed Oct. 21, 2020. Nickels cost even more to make - If we eliminate the penny, we will need more nickels in circulation. From an economic standpoint, it simply doesn't make sense to continue producing these coins. 9 Reasons Why America Should Get Rid of the Penny - The Balance Please refer to the appropriate style manual or other sources if you have any questions. You have it. Remember, pennies cost 2 more than how much their worth, while nickels cost 5 more than the nickel is worth. The elimination of a $58 million dollar annual cost on a federal government running trillion dollar annual deficits each and every year isnt going to move the needle one micrometer back towards fiscal sanity in this country. In some respects, we can make the same argument for the paper dollar. While we do our best to keep these updated, numbers stated on this site may differ from actual numbers. Producing pennies also uses a great deal of energy. 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 . Not if we want to keep ination in check, protect America's It cost 2.4 cents to make the penny. (Also Nickels. I will now list them and also describe them. 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. Aside from its Lincoln portrait, though, it has undergone a number of major changes in design and composition. 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. Theyre so hard to use that they end up stuffed in jars or abandoned on sidewalks. Keeping the Penny. Cash transactions there are now rounded up or down to the nearest $0.05. If so, how? E-Trade. Anti-penny advocates scoff at this argument, pointing out that Lincoln would still remain on the $5 bill, which is actually useful to consumers. It began as a pure copper coin, but when prices rose during World War I, the Mint added nickel to the penny to cut costs. 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. [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 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. New Zealand got rid of its penny and two-penny coins without incident back in 1989, and in 1991 replaced their two lowest paper denominations with coins. In 2020, the Mint shipped out more pennies than nickels, quarters, and dimes put together over 8 billion coins. 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. The U.S. One Cent coin, or penny, has almost no purchasing power today. References to products, offers, and rates from third party sites often change. This is backed up by U.S. Bureau of Labor Statistics; they state there are 343 million consumers in this country adding up to over 25 million hours wasted on counting pennies. This argument pointing to honoring Lincoln has been enough to stave off elimination for years, with few anti-penny advocates willing to make this penny point in their arguments against it. Their reasons differ. 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. the penny under one cent. Should the penny stay in circulation? Along with the zinc, the ores usually contain other metals, including toxic metals like cadmium and lead. How would removing pennies impact people who primarily rely on cash transactions? "Current Market." Why America Should Get Rid of the Penny - Ontopwiki The Mint made nearly 6 billion pennies in 2012 and lost a cent on every single one of them. Many wont even bend to pick them up, as Andy Rooney noted on a 60 Minutes segment some years ago. This means that taxpayers are losing money every time the mint produces a penny. PDF The Penny Debate - Should We Keep the Penny or Get Rid of It? Supporters of the penny point to all-cash transactions as a reason why it should remain in circulation. 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. In conclusion we should get rid of the penny. However, the penny is a very sentimental coin to most Americans, and many people fear that eliminating the penny would raise prices because things would need to be rounded up to thenearest nickel. The melt value of a zinc penny is one-half of a cent. The problem was resolved by reducing the size of the cent and changing its composition from copper to an alloy of copper and nickel. 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. Mark Weller is ACC's executive director. Not only do they cost money to make, but they don't buy much anymore - you can't even buy gum with them! Its giving store owners even more reasons to avoid handling cash as much as possible. Economist Robert Shapiro estimated in a 2017 paper that it costs 55 times more to make pennies than the value of each coin itself. 7 Reasons to Get Rid of the Penny 2022-11-18. The rust should come right off! Accessed Oct. 21, 2020. You're saving it. Top 3 Pros and Cons." The United States penny has had a fascinating journey since entering circulation. 10 reasons why we should keep the penny - artyrox.com That's why last December, Congress directed the United States Mint to nd ways to produce our coins more cost-effectively. Even the US Mint admits that the cost of producing a penny in 2007 could be as high as 1.4 cents. 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. It's a Money Loser for You. 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. [ 34 ] 5. Act, which would stop the minting of the penny for ten years to assess the repercussions. 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 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. Despite what the old song says, pennies don't really come from heaven. However, it doesnt say what those reasons are. In recent years, a debate on whether or not America should keep the penny has arisen. People think we should not make pennies because they cost 2 cents to make. That would cost an estimated $10.9 million more annually than it would cost to keep making pennies. Argumentative Essay: Keep The Penny | ipl.org - Internet Public Library Should We Get Rid of the Penny? - Scholastic It doesnt matter. [18] Harvard economist Greg Mankiw stated, The purpose of the monetary system is to facilitate exchange. The problem with abolishing coins - BBC Worklife [1] Thats a bargain for how many times it gets used. shutterstock.com Around 8% of coppers are thrown in the bin every year. 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. And aluminum cents wouldnt be entirely new. Despite what the old song says, pennies dont really come from heaven. A study by Walgreens and the National Association of Convenience Stores found that pennies add 2 to 2.5 seconds to each cash transaction. 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. Should the US government consider removing other coins from circulation as transactions become more digital? In 1857, the half-cent had the purchasing power that would translate to well over ten cents today, so in some ways, it was akin to our eliminating the dime. 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. However, in recent years, there has been much debate about whether or not we . A few people groused about it, but commerce continued unabated. In 1962, it removed tin from the alloy, changing it from bronze to brass. The penny is no longer a useful form of currency and its continued existence is costing the US government money. 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. Today, theres literally nothing you can buy with a single penny and you cant do much else with it either. If we keep the penny we would get more taxes over time. As debate continues on both sides, let's explore 8 reasons why we should keep or eliminate it. The cost of producing them is higher than face value. Whats less clear is why Americans are so committed to a coin with so little monetary value. He is also heavily involved in numerous charities and volunteer efforts throughout the city. Shops wouldn't get money from you and you can save up. The arguments for halting production of pennies basically boil down to the idea that theyre more trouble than theyre worth. Pennies today are worth almost nothing, but they still cost money to produce and consume vast quantities of natural resources. the pennyare affected by higher metal costs. The first penny, known as the Fugio cent, was reportedly designed by Benjamin Franklin in 1787. Although these arguments aren't based on factual evidence, there is something to be said for keeping the penny around. (6) The penny has become useless as a means of exchange. To the average American, this is a perfect match: the common mans President on the common mans coin. [12], Organizations such as the Leukemia and Lymphoma Society, the Salvation Army, and the Ronald McDonald House ask people to donate pennies to raise funds. That adds up to a loss of over $61 million for that year alone. It is unclear whether the rounding would be up or down. "Penny Stock Rules." The folks who want to retire the penny also have some compelling arguments, including those below. If more businesses follow Chipotles example and start rounding down their bills, their customers will find themselves with fewer pennies in their pockets. In 1792, Congress created a national mint authorized to make gold, silver, and copper coins, including the one-cent piece known as the penny. U.S. Securities and Exchange Commission. 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. Dominic Townsend is a successful article author based in New York City. 10 reasons why we should keep the penny . Get DIY project ideas and easy-to-follow crafts to help you spruce up your space. For these types of payments, rounding to the nearest nickel would cost consumers an extra 2021 dollars annually. Although originally made of pure copper, pennies today are composed of 97.5% zinc and 2.5% copper. Although the cost for printing a dollar bill is about five cents, only lasts an average of eighteen months. But without its namesake coin, many of these penny points saw a significant drop-off in donations - as much as 90%, according to one group that doesn't provide further details. A 2006 Coinstar poll found that 33 percent of American men and 22 percent of American women do not value spare change. Top 3 Pros and Cons,", ProCon.org, "Should the Penny Stay in Circulation? Reason one as to why the penny should be eliminated because in today 's world nothing can be purchased with a penny. This article was published on July 2, 2018, at Britannicas ProCon.org, a nonpartisan issue-information source.
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