Rating: 4 (257 reviews) Highest rating: 4. 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? 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. I think it human nature to maintain status quo until it becomes a crisis. This is because rounding up would make their already tight budget even tighter. 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. In 1792, Congress created a national mint authorized to make gold, silver, and copper coins, including the one-cent piece known as the penny. In fact, it costs almost a dime to make a nickel today. Eliminating the Penny Reflect: Freewrite Now that you've had a chance to read, review, and reflect on "The Penny Debate," record your thoughts and feelings about whether to keep or eliminate the penny. The United States should continue the production of the penny. Americans for Common Cents, the pro-penny group funded by the zinc industry, calls the claim absurd. In the first place, the group argues, employees who spend less time counting out change wont necessarily spend it on other, more useful tasks. Steel and aluminum are two alternative metals that have been mentioned. Should We Get Rid of the Penny? | Jay Zagorsky's Research & Blog - U.OSU So can we do without the penny? It cost 2.4 cents to make the penny. The melt value of a zinc penny is one-half of a cent. Because pennies are worth so little, theyre much heavier than any other coin in proportion to their value. Eventually, this reduced demand will result in fewer pennies being minted each year. Both sides in the penny debate make some good points, and the solution is far from being an easy decision. It would also cause prices to rise. It doesnt matter. The Penny Debate: to Keep or not to Keep - Free Essay Example - Edubirdie One of the overlooked reasons why we should keep the penny is that the abolition of the penny would force an increase in the production of the nickel, as more nickels would be necessary to make up for the pennies that are not in circulation. American Numismatic Association If more businesses follow Chipotles example and start rounding down their bills, their customers will find themselves with fewer pennies in their pockets. 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. If Cash is No Longer King, What Does that Make Stupid Pennies? Penny opponents such as Kolbe, Whaples, and Mankiw have all expressed the hope that the pandemic and the resulting coin shortage will finally provide the incentive for Congress to get this virtually worthless coin out of our pockets and our lives. Several unsuccessful legislative efforts have sought to bring about the pennys extinction. Numerous Americans are in favor of keeping it due to sentimental value, while others say it is just too costly. Freshly minted pennies at the US Mint in Denver 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. We like to give back to our local art community by presenting presidential line of succession 2022 - A fresh look at a contemporary and traditional southwestern art work. 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. The Salvation Army was one of the first charities to hold drives to collect discontinued pennies when the Canadian government announced it would drop its lowest-value coin, due to its cluttering up peoples' pockets. 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. 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! 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. In his spare time, Dominic enjoys running along the Hudson River and exploring the citys art galleries. However, the nickel is in just as bad a shape as the penny. But if we get rid of the penny we would have to stick with the nickel. With more consumers moving toward contactless payment methods, news sources from Fortune to NPR began asking: Is the penny finally on its way out? 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. However, overall, the Mint is a profit-making machine. Additionally, the United States Mint changed the silver composition and weight of many coins due to the increasing price of silver. Keeping the penny eliminating the penny reflect - Course Hero Opinion | Abolish the Penny - The New York Times Top 3 Pros and Cons." Accessed Oct. 21, 2020. This change was likely an attempt to cut costs further as the cost of copper had risen again by this time. 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). Halting production of the coin is becoming a more and more popular topic among anti-penny advocates. 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. Despite what the old song says, pennies dont really come from heaven. 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. What Are Elastic, Unitary and Inelastic How to Approach Change in an Organization. However, a newer study by economist Robert Whaples, published by the Eastern Economic Journal in 2007, contradicts Lombras findings. 10 reasons why we should keep the penny - 247healthandfitness.com This not only weighs down our pockets, but it also holds up the line while we mess around counting out coins. 1. ], ProCon.org, "Should the Penny Stay in Circulation? In 2013 alone, this cost taxpayers $105 million. After reading the pros and cons on this topic, has your thinking changed? Can We All Just Agree That Pennies Are Stupid And Need To Be - HuffPost 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. However, 59% of adults polled between June 10 and June 16 of 2004 by Harris Interactive said that they . Consequently, all government payments tied to the CPI, such as Social Security, would rise, costing the government $1.5 billion ($3 billion in todays dollars) over five years. A nonpartisan organization called Citizens for Retiring the Penny, founded by students at Wake Forest University in 2006, supports eliminating it from circulation. 10 reasons why we should keep the penny - theflowerfall.com This is only the opening salvo in the Great Penny Debate, however. 9 Reasons Why America Should Get Rid of the Penny - The Balance Learn how to keep it safe. That adds up to $2,100,000,000 every generation of only pennies. According to the U.S. Environmental Protection Agency, zinc ores contain only 3% to 11% metallic zinc. They are good for societies that help with cancer, fundraiser, etc. Learn more about why the penny should be abolished. Finally, small-change drives arent a cost-effective way for charities to raise funds. A zinc penny weighs 2.5 g. Doing the math, 327 billion pennies weigh 1.8 billion pounds Should Pennies Be Eliminated Research Paper - 539 Words | Bartleby Instance penny supporters claim that the penny still holds value and should be kept in circulation. In 2006, New Zealand eliminated the nickel, and while they were at it, they significantly shrunk down the rest of the coins. 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. Author: www.thebalancemoney.com. Opinion | The penny should be eliminated | Opinion | breezejmu.org 2023 Money Crashers, LLC. Since the penny costs 0.26 more than face value to Accessed Oct. 21, 2020. Although these arguments aren't based on factual evidence, there is something to be said for keeping the penny around. Most recently, in 2017, SenatorsJohn McCain(R-AZ) andMike Enzi(R-WY) sponsored ultimately failed legislation that would have suspended minting of the penny. "IRA FAQs - Investments." 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. Millions of consumers also oppose the cents elimination on economic grounds. The penny was first minted in 1857. Once the timer stops, you can always click . A 2015 Harris poll shows that 51% of Americans favor keeping the penny, while just 29% think we should eliminate it. Act, which would stop the minting of the penny for ten years to assess the repercussions. None of these changes caused any significant problems in commerce. However, a newer study published in 2007 by economist Robert Whaples in the Eastern Economic Journal contradicts Lombra's findings. Make sure you have some later too. Thus, it couldnt affect government expenditures or trigger widespread inflation. 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. 9 " Centsible " Reasons to Get Rid of the Penny. Based on this data, Whaples concluded that after sales taxes and fees, consumers would come out slightly ahead on average with prices rounded off to the nickel. Creating the penny releases C02 into the air. Without pennies to make exact change, prices would have to be rounded up or down to the nearest nickel and skeptical Americans fear that most of the rounding would be up, increasing the cost of much of what they buy. Eliminating the penny would mean taking away a significant part of his legacy, which many people consider unacceptable. Should we keep the penny. In theory, a single penny could be used for hundreds or thousands of transactions before it drops out of circulation. Would love your thoughts, please comment.
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