10 reasons why we should keep the penny

It remains to be seen how permanent the new reverse will be, with the fiscal sword of Damocles hanging ominously over the pennys future. If that is the case, then people would be less willing to part with spare change for charitable drives. 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. [10][11] So what if it costs 1.8 cents to make? For example, the mint made the first dime in 1796 that weighed 2.7 g and had 89.24% silver. So can we do without the penny? Treasury officials reasoned correctly, it turned out that by then, Americans had developed enough confidence in their government to accept base-metal coins, quite literally, at face value despite their reduced intrinsic value. U.S. Securities and Exchange Commission. 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. There are plenty of DIY penny jewelry ideas out there, including a bracelet, a lucky penny necklace, and a bejeweled ring. Add it all up, and it comes to more than 25 million hours wasted each year. However, this only works if the coins actually do circulate and pennies, as noted above, often dont. The penny should be abolished because it costs more to produce than it is worth . A Penny For Your Thoughts: Why Pennies Are Still Necessary "Current Market." Some are opposed to change, and others are attached to the penny for sentimental reasons. Four decades ago, the Mint made more than 1.5 million prototype aluminum cents during a similar crisis, with every expectation they would soon see use in circulation. Americans have a love-hate relationship with pennies. Act, which would stop the minting of the penny for ten years to assess the repercussions. In the rare case you have never heard of or used a penny, it is the one cent coin in U.S. Although these arguments aren't based on factual evidence, there is something to be said for keeping the penny around. They argue that eliminating it could hamper charities and fundraising efforts, as people feel more generous when they have coins to give away. The content on Money Crashers is for informational and educational purposes only and should not be construed as professional financial advice. To access extended pro and con arguments, sources, and discussion questions about whether the penny should stay in circulation, go to ProCon.org. Shops wouldn't get money from you and you can save up. Also we should ks to make the government get his money out and thats over $8 million more than a penny is work. According to the Royal Mint, there are 11,430m 1p coins (worth 114.29m) and 6,714 2p . 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. This question has been debated for years, with people arguing for and against its elimination. 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. A HuffPost/YouGov poll conducted in January found that only 34 percent of Americans are in favor of eliminating the penny, while 51 . OTC Markets. 4. We Have a Precedent for Eliminating Worthless Coins. However, other arguments are sentimental, having to do with the way people feel about the coin. 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. Accessed Oct. 21, 2020. "Penny Stock Rules." 7 Reasons to Get Rid of the PennyIt's a Money Loser for the Government. 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? Should We Get Rid of the Penny? | Jay Zagorsky's Research & Blog - U.OSU 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. Despite all the arguments for retiring the penny, the majority of Americans are in favor of keeping it. But one point that these advocates often overlook is the value of honoring Abraham Lincoln, the revered president depicted on the penny's face. In 2017 it earned almost $400 million in profits producing circulating coins. 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 . PDF Yes No Should The Penny Be Retired - warrencountyschools.org Eliminating pennies would save time at the point of purchase without hurting customers or businesses financially. The United States should continue the production of the penny. In 1792, Congress created a national mint authorized to make gold, silver, and copper coins, including the one-cent piece known as the penny. [31][32][33], 2. There are precedents for getting rid of coins that are too small to use. 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. [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. Remember, pennies cost 2 more than how much their worth, while nickels cost 5 more than the nickel is worth. Keep or Get Rid of the Penny? 8 Reasons to Do Either While every effort has been made to follow citation style rules, there may be some discrepancies. The answer, for a variety of reasons, is a resounding "yes.". Managing Editor Benefits of Keeping the Penny | Bizfluent They support keeping the penny because pennies represent the most expendable part of pocket change. Chicago, Illinois 60654 USA, Natalie Leppard 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. NBC's Morgan Radford reports for Weeke. The total amount doesn't end when coins and citizens are debating the penny and whether or not it should be kept. A nonpartisan organization called Citizens to Retire the U.S. Penny has attracted the support of economists from Harvard and Wake Forest University. Simply mix one tablespoon of salt with two tablespoons of white vinegar, then submerge the penny in the liquid for a few minutes. The Pros And Cons Of Abolishing The Penny | ipl.org Currently there's no action being taken on the elimination of the penny. You have it. 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. That's why last December, Congress directed the United States Mint to nd ways to produce our coins more cost-effectively. You can easily get rust off a penny using vinegar and salt. The penny costs an irrational amount of money compared to what it's worth. Learn how to protect yourself when the bank takes your car. Learn how to keep it safe. Cryptocurrencies provide users with an alternative form of money that is not controlled by any government or bank, but is instead based on blockchain technology. 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. 7 Reasons to Get Rid of the Penny 2022-11-18. He is also heavily involved in numerous charities and volunteer efforts throughout the city. The new penny, first issued in 1857 with a Flying Eagle design, was about one-third smaller in diameter than the large cent and less than half the weight. A low-denomination coin helps keep prices in check. Anti-penny advocates are fond of pointing out that today, the penny costs taxpayers more to produce than its actually worth. A zinc penny weighs 2.5 g. Doing the math, 327 billion pennies weigh 1.8 billion pounds Apr 08, 2023; By ; In nmaa all district teams 2022; camscanner premium account id and password ProCon.org. Here are both re. Freshly minted pennies at the US Mint in Denver This is because rounding up would make their already tight budget even tighter. Management decided that losing a cent or two on most transactions was better than having long lines of customers waiting for change. 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! Should we keep the penny. Since 2006, Jarden has given $1.2 million to Americans for Common Cents (ACC). 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!!!! Accessed Oct. 21, 2020. Halting production of the coin is becoming a more and more popular topic among anti-penny advocates. There are reasons for the elimination of the penny, mostly having to do with the inconvenience of the small coin. Former Representative Jim Kolbe of Arizona sponsored two bills in Congress to eliminate the penny. Danielle DeLee began writing in 2010. Companies would need to update their price catalogs. However, the nickel is in just as bad a shape as the penny. 4. This change was likely an attempt to cut costs further as the cost of copper had risen again by this time. All these toxic metals can contaminate water, soil, and plants in the area surrounding the mine. 1. Pennys also teach kids about money like there 1, 5, 10, 25, and dollars bills if we didn't have the penny they wouldn't even know what they penney is an advanchley we would forget about . First, consumers benefit with a low denomination coin. Most Americans want to keep the penny. 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. [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. 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. Dominic Townsend is a successful article author based in New York City. The penny, a one cent coin, costs 2.41 cents to make, which is nearly 1.5 times what it's worth (source 1). You don't have to be a mathematician or an economist to conclude that it costs nearly two pennies to make one penny. Want to learn more? 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. He has written for many top publications, such as The New Yorker, Huffington Post, and The Wall Street Journal. 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. More recently, the mint changed the cupro-nickel clad dollar coin (the Susan B. Anthony) to the "golden dollar" type used in theSacagaweaandPresidential Dollartypes. 6.9 Reasons Why America Should Get Rid of the Penny - The Balance. 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. Keeping the Penny. List two to three ways. The change from brass, the previous composition, took place in 1982 as a cost-cutting measure because zinc was much cheaper than copper. She is a member of the American Numismatic Association (ANA) and holds several certifications. -- who dumped their low-denomination coins 30 years ago, will be laughing at our senseless jingling. The current cost for manufacturing a nickel is 7.29 cents per coin. There's been a debate brewing over the value of the penny, and conversations have grown amid a national coin shortage. Cash transactions there are now rounded up or down to the nearest $0.05. 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. [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. 9. ProCon/Encyclopaedia Britannica, Inc. Using your figures, that would amount to about 1000 ounces of copper. Explain your answer(s). 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. 1943 pennies were made out of a mixture of steel and copper, due to the war effort during World War II. Thus, it couldnt affect government expenditures or trigger widespread inflation. Last year, almost 60% of the coins that the U.S. Mint churned out were . To save time at the register, some businesses have experimented with rounding all transactions to the nearest nickel. 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. Eventually, this reduced demand will result in fewer pennies being minted each year. 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. While countries such as Australia . Should the penny stay in circulation? You don't want to lose it. Maybe this is another consideration that the U.S. government should look at. shutterstock.com Around 8% of coppers are thrown in the bin every year. http://www.moneycrashers.com/get-rid-penny-reasons/Are you in favor of getting rid of the penny? And as it grows ever easier for charities to accept donations electronically, coin drives are likely to play a diminishing role in fundraising. ], ProCon.org, "Should the Penny Stay in Circulation? Copyright 2023 AMAC, Inc. / AMAC Senior Resources Network. 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 price of zinc, which currently composes 97.5 percent of a penny, has tripled over the past 15 years. [17], You cant buy anything for a penny; vending machines and parking meters wont accept them. 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. 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. Arguments for and Against Keeping the Penny - The Spruce Crafts Can We All Just Agree That Pennies Are Stupid And Need To Be - HuffPost [1][13] The cost of making and shipping pennies includes some fixed costs that the US Mint would continue to incur even if we abolished the penny, because the Mint would still make other coins. The cost of producing them is higher than face value. However, while many people are calling for the pennys retirement, others are working just as hard to keep the coin in circulation.
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