Millions of consumers also oppose the cents elimination on economic grounds. It's a Money Loser for You. Should We Get Rid of the Penny? - Scholastic That will save Canadian taxpayers $11 . Can We All Just Agree That Pennies Are Stupid And Need To Be - HuffPost Pro and Con: Pennies | Britannica According to Trading Economics, the inflation rate in Canada since the changeover has wavered between a high of around 3% and a low of negative 0.5%. In 1857, the U.S. Mint stopped making the half-cent coin, partly because the cost of making it had exceeded its face value, and somewhat because it was considered to be too small a denomination and it was no longer needed. They support keeping the penny because pennies represent the most expendable part of pocket change. There are precedents for getting rid of coins that are too small to use. Analyze the pro argument of Mark Weller from Americans for Common Cents. Discounting the fact that those Wheat Cents might have some slightly higher . Pennies Argumentative Essay - 605 Words | Studymode 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. It will be a lot easier just to keep the penny because then we don't have to tell everyone to change. This is why anti-penny advocates argue that its a bad idea to keep making them when the mint loses money doing so, while other coins like nickels cost less to make but have higher value. The people who make less than $35,000 dollars a year need pennies. Susan also belongs to the American Numismatic Society (ANS) and CONECA (error and variety coins club). Why America should get rid of the penny? - Ufoscience.org Aaron's argument resonates with many modern consumers who remember when a person could buy a mini Tootsie Roll, Mary Jane or ice cream cone at the candy store with just one penny. Since then, the U.S. Mint has issued several hundred billion Lincoln pennies, making this the most heavily produced coin in human history. Keeping the Penny. Learn more about why the penny should be abolished. But others have a vested interest in keeping the penny alive. 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. [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. Argumentative Essay: Keep The Penny | ipl.org - Internet Public Library 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. While every effort has been made to follow citation style rules, there may be some discrepancies. For example, the mint made the first dime in 1796 that weighed 2.7 g and had 89.24% silver. Some Hope Not," nytimes.com, July 29, 2020. Vending Machines Don't Want Them. The group's mission is to keep the penny in use. However, this only works if the coins actually do circulate and pennies, as noted above, often dont. 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. Sign up for more easy craft ideas, fun hobbies, and DIY projects, Lincoln Wheat Penny Key Dates, Rarities and Varieties. The United States Mint makes over 20,000,000 pennies per day, or 7,000,000,000 pennies per year. Despite what the old song says, pennies dont really come from heaven. Although originally made of pure copper, pennies today are composed of 97.5% zinc and 2.5% copper. As the U.S. Mint faces the prospect of having to find more cost-effective compositions from which to make the nation's coinage, the debate about the continued existence of the humble penny is sure to carry on. Dimes cost less than $0.04 to make, so the Mint could produce more of those without losing money. In 2017, Senators John McCain and Mike Enzi introduced S.759 Currency Optimization, Innovation and National Savings (or C.O.I.N.S.) Post date: 20 yesterday. A study by Walgreens and the National Association of Convenience Stores found that pennies add 2 to 2.5 seconds to each cash transaction. Unlock the Ultimate Benefits with the United 1K Guide! Since 1982, 327 billion pennies have been minted. If we were to get rid of the penny, cash transactions would be rounded to the nearest nickel. Below are the proper citations for this page according to four style manuals (in alphabetical order): the Modern Language Association Style Manual (MLA), the Chicago Manual of Style (Chicago), the Publication Manual of the American Psychological Association (APA), and Kate Turabian's A Manual for Writers of Term Papers, Theses, and Dissertations (Turabian). 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. (4) Considering that the penny has virtually no purchasing power, it does nothing except add unnecessary weight to our pockets and purses. [28] Harvard economist Greg Mankiw says that this wasted time costs the US economy around $1 billion annually. 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. Dominic Townsend is a successful article author based in New York City. Steel and aluminum are two alternative metals that have been mentioned. The very fact that pennies have so little value makes them useful to charities because people are happy to give them away. ", ProCon.org. The penny may be worthless, but let's keep it anyway Are culture would be forgotten shops prices . It cost 2.4 cents to make the penny. Depository Trust and Clearing Corporation. Cash transactions there are now rounded up or down to the nearest $0.05. Removing the penny removes grades of information that could be available to investors, consumers and manufacturers. 3. Payments made with credit, debit, or old-fashioned checks are still settled down to the cent. It's a Money Loser for Retailers. But if we get rid of the penny we would have to stick with the nickel. Reason one as to why the penny should be eliminated because in today 's world nothing can be purchased with a penny. That would cost an estimated $10.9 million more annually than it would cost to keep making pennies. Top 3 Pros and Cons. Read more to learn about the potential benefits of eliminating the penny. It's the $2 bill and it's the rarest small-denomination currency in circulation, representing about 1 percent of our money. Overall, continuing the use and manufacturing of pennies . The only real muscle the electorate has is the vote. But, by the 1850s, the government faced much the same dilemma as today: The price of copper had risen, making cents too costly to produce. The reason that we should continue the production of pennies is because the citizens of the United States do not deserve more change than is needed. Currently there's no action being taken on the elimination of the penny. However, while many people are calling for the pennys retirement, others are working just as hard to keep the coin in circulation. They are good for societies that help with cancer, fundraiser, etc. memorial service for bro. Carlton Pinney | Join us as we - Facebook (5) The United States should follow the lead of other countries and discontinue the penny, because it is obsolete and costs more than it is 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. It too had very little purchasing power at the end of its life. Simply mix one tablespoon of salt with two tablespoons of white vinegar, then submerge the penny in the liquid for a few minutes. The Penny Debate: to Keep Or not to Keep - GradesFixer However, a newer study by economist Robert Whaples, published by the Eastern Economic Journal in 2007, contradicts Lombras findings. A cent that, most of the time, goes unused. -Pennies are less costly to make than nickels, as 5 pennies, costing 6.3 cents to make at 1.26 cents per penny are less cheaper than nickels, which are cost 7.7 cents to make. The answer, for a variety of reasons, is a resounding "yes.". The pro-penny group backs up its claim by pointing to the work of economist Raymond Lombra. Although originally made of pure copper, pennies today are composed of 97.5% zinc and 2.5% copper. 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. The price of zinc has soared over the course of the last few years, and with that the price to produce the penny has gone up. 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. Since the goal of any business is to make money, most prices would be rounded up, not . For people making over $100,000 those few extra cents don't matter. "FAQs: How Issuers Work with DTC." She also maintains a personal blog. As the U.S. Mint explains, the copper surface of a penny accounts for only 2.5% of its metal content. Perhaps the main issue is that some of the major opponents to getting rid of the penny are the producers of coin blanks and the U.S. zinc lobby -- the groups that profit from the production of the penny. Accessed Oct. 21, 2020. Large cents bearing portraits of Miss Liberty were minted for 64 years a long lifespan during the nations first century. The penny no longer serves that purpose. The melt value of a zinc penny is one-half of a cent. According to the 2020 Annual Report from the U.S. Mint, it now costs about $0.018 or 1.8 cents to make one cent. Supporters of the penny point to all-cash transactions as a reason why it should remain in circulation. The penny has increased to 7.6 million dollars a year to make a penny. To begin with, the Mint itself cant impose such a death penalty. And since the Mint produces billions of pennies a year, the government loses millions of dollars annually in the process. This could potentially have a big impact on charitable organizations that rely heavily on donations from their supporters. 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. 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! Several unsuccessful legislative efforts have sought to bring about the pennys extinction. But whether or not you believe picking up that penny will bring you luck, one thing it definitely wont bring you is wealth. The impact of the loss of the penny on price flexibility depends on its implementation. A low-denomination coin helps keep prices in check. If consumers in 1857 could get along without halfpennies, then modern consumers can almost certainly manage without a coin thats worth less than one-tenth as much. Even during my childhood in the 1980s, there was a candy store not far from our house that sold penny candy in jars one penny for a mini Tootsie Roll, or two for a Mary Jane. The alternative to the penny . As debate continues on both sides, let's explore 8 reasons why we should keep or eliminate it. 9 "Centsible" Reasons to Get Rid of the Penny . The process of making pennies is costly both financially and environmentally. Chipotle restaurants have already taken this initiative by simply rounding bills off to the nearest nickel, but when management decided to do this some customers complained about paying extra cents added on their bills. However, in recent years, there has been much debate about whether or not we . Make sure you have some later too. Top 3 Pros and Cons." The cost of producing them is higher than face value. His mission is to use his platform as an author to bring awareness and perspective on important issues affecting everyday life. shutterstock.com Around 8% of coppers are thrown in the bin every year. Most Americans want to keep the penny. Should you need such advice, consult a licensed financial or tax advisor. It would also cause prices to rise. Politics latest updates: NHS 'on the brink' says nursing union; 10% Summary: Pennies are made of zinc and copper, and zinc can be harmful: Zinc mining and industrial use has negative . A 2019 poll by Americans for Common Cents found even stronger numbers in favor of pennies, saying 68% of adults want to see the penny remain legal tender. This is because rounding up would make their already tight budget even tighter. [22], At a total per unit cost of 1.82 cents, it costs nearly two pennies to make one penny. In addition, zinc is toxic in high doses and small amounts can contaminate water and soil in the area surrounding ore roll producing pennies. And in 2010, the Mint introduced a permanent new reverse depicting a Civil War-era Union shield. Opinion | Abolish the Penny - The New York Times Will a suitable substitute be found? Benefits of Keeping the Penny | Bizfluent The group marshals support from consumers, charities and small businesses who argue that without the penny there will be higher prices due to rounding up costs. This means that taxpayers are losing money every time the mint produces a penny. [1] Aaron Klein, former Deputy Assistant Secretary for Economic Policy at the Treasury Department, estimates that the United States could see $1.78 billion in losses over the next 30 years if the penny remains in production. The existence of pennies helps raise a lot of money for charities. Baby boomers may nostalgically reminisce of a time when the penny was king, but economist Henry Aaron of the Brookings Institution and other nonprofit research groups argue that the penny's time has come and gone. 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. A zinc penny weighs 2.5 g. Doing the math, 327 billion pennies weigh 1.8 billion pounds That's why last December, Congress directed the United States Mint to nd ways to produce our coins more cost-effectively. [ 36 ] 6. [18] Harvard economist Greg Mankiw stated, The purpose of the monetary system is to facilitate exchange. A second reason this should happen is that it is bad for the environment. The discontinuation of the penny would require significant turnover. Once the timer stops, you can always click . Thats what happened in Canada, where the Salvation Army and numerous other charities held drives to collect discontinued pennies in 2013. 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, other arguments are sentimental, having to do with the way people feel about the coin. For example the article Should we get rid of the Penny 8 Reasons to Keep it vs Eliminate it says,"Design Life-Cycle.org a sight created by students at the University of California, calculates that just transporting pennies to banks-not even counting any other stage of . You're saving it. [11] In 2009, the Leukemia and Lymphoma Society announced that school children had collected over 15 billion pennies in support of its charitable work thats $150 million dollars for blood cancer research and treatment. They are also bf and environment this doesnt make your hands very very very stinky I dont like the smell of metal. Some stores are even refusing to accept cash altogether. In 1962, it removed tin from the alloy, changing it from bronze to brass. This change was likely an attempt to cut costs further as the cost of copper had risen again by this time. 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. And as it grows ever easier for charities to accept donations electronically, coin drives are likely to play a diminishing role in fundraising. Please refer to the appropriate style manual or other sources if you have any questions.
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