10 reasons why we should keep the penny

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. Less than forty years later, the mint reduced the weight to 2.67 g and used a composition of 90% silver. Shops wouldn't get money from you and you can save up. After reading the pros and cons on this topic, has your thinking changed? 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. Dimes cost less than $0.04 to make, so the Mint could produce more of those without losing money. That makes them a much more cost-effective way to honor Lincoln than a penny that costs $0.018 to mint. For the first 50 years, the Lincoln cents reverse displayed two sheafs of wheat framing the statement of value. [23], Making pennies also has environmental consequences from mining and transportation. Analyze the pro argument of Mark Weller from Americans for Common Cents. 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. From an economic standpoint, it simply doesn't make sense to continue producing these coins. Susan also belongs to the American Numismatic Society (ANS) and CONECA (error and variety coins club). In 1959, the 150th anniversary of Lincolns birth, this wheat-ears reverse gave way to a likeness of the Lincoln Memorial. A graduate of NYU, he has an MA in English literature and loves literature from all ages. Most recently, in 2017, SenatorsJohn McCain(R-AZ) andMike Enzi(R-WY) sponsored ultimately failed legislation that would have suspended minting of the penny. Also the penny is a big part . To learn more, read our article on the possible economic impact of eliminating the penny. Not if we want to keep ination in check, protect America's When the Baby Boomers were young, a penny still had some value. That adds up to $2,100,000,000 every generation of only pennies. Should we keep the penny. That doesnt sound like much, but a 2019 Federal Reserve study shows that the average consumer still makes 11 cash transactions each month and according to the Bureau of Labor Statistics, there are over 343 million consumers in the country. The Lincoln cent, now more than 100 years old, is by far the longest-running coin in U.S. history. There are many anti-penny advocates that scoff at its existence, arguing that it costs more to mint pennies than the coins are worth. 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. 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. Cash transactions there are now rounded up or down to the nearest $0.05. Along with the zinc, the ores usually contain other metals, including toxic metals like cadmium and lead. This not only weighs down our pockets, but it also holds up the line while we mess around counting out coins. The current cost for manufacturing a nickel is 7.29 cents per coin. In 2021, the Mint made 7.60 billion pennies, costing taxpayers $145.8 million. Why or why not? 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. At the G-8 summit next week, the Brits and the French -- even the French! 10 reasons why we should keep the penny . In 2009, four different cents were issued with images representing key segments of Lincolns life. The less a person makes the more the saying "every penny counts" rings true. 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 . Should you need such advice, consult a licensed financial or tax advisor. Learn how to pay for IVF with these strategies for fertility financing. Unlike some other foreign governments, the penny remains legal tender in Canada. Its the only coin we have that has Lincolns face on it! Act, which would stop the minting of the penny for ten years to assess the repercussions. 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. So long as most Americans remain attached to the penny whether their reasons are logical or not its unlikely that a bill to eliminate it will ever make it through Congress. Despite all this, surveys consistently show that most Americans dont want pennies discontinued. News sources such as NPR began speculating whether the penny would finally be retired or if crypto possibilities might replace it. All these toxic metals can contaminate water, soil, and plants in the area surrounding the mine. All prices would have to be rounded to the nearest nickel. We Won't Forget President Lincoln. Millions of consumers also oppose the cents elimination on economic grounds. Getting rid of the penny would save time since customers wouldn't have to search for their nearest nickel and wait in long lines while customers ahead of them try to count out exact change. In 2013, Aaron wrote an anti-penny screed pointing out that it costs more to make a penny than its face value - 1.8 cents each - and therefore it is not cost-effective. Aside from its Lincoln portrait, though, it has undergone a number of major changes in design and composition. In 2010, it cost 1.67 cents to produce each penny. Aaron notes in his Brookings Institution editorial that eliminating both pennies and nickels would round off all cash transactions to the nearest $0.10, making for easier math and less stuff in our pockets.. His mission is to use his platform as an author to bring awareness and perspective on important issues affecting everyday life. In June of this year, New York Times op-ed columnist William Safire wrote an article calling for the elimination of the penny. However, it is removed from circulation when tendered at a Canadian banking facility. According to an old superstition, its good luck to find a penny on the sidewalk. 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. However, new initiatives are being proposed to make the penny more efficient - read more to find out how! For example, the mint made the first dime in 1796 that weighed 2.7 g and had 89.24% silver. In 2017, Senators John McCain and Mike Enzi introduced S.759 Currency Optimization, Innovation and National Savings (or C.O.I.N.S.) The U.S. Mint does lose money on pennies and nickels. The penny debate gained renewed attention when the coronavirus pandemic led to a nationwide coin shortage as consumers moved towards contactless payment methods. That will save Canadian taxpayers $11 . Penny opponents point out several problems with this argument. Removing the penny would save taxpayers money and reduce unnecessary waste. 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. The C.O.I.N.S. Any action you take based on the information found on cgaa.org is strictly at your discretion. In his spare time, Dominic enjoys running along the Hudson River and exploring the citys art galleries.He is also heavily involved in numerous charities and volunteer efforts throughout the city. The composition change also meant that Pennies became lighter; before 1982 they weighed 3.11 grams compared to only 2.5 grams after 1982 and about 2500 grams for one dime (2268 grams). 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. 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. 4. Many detractors, tell me what a detractor is, argue that the penny costs more than its face value to . That's why last December, Congress directed the United States Mint to nd ways to produce our coins more cost-effectively. There are precedents for getting rid of coins that are too small to use. "Microcap Stock: A Guide for Investors." In 2006, New Zealand eliminated the nickel, and while they were at it, they significantly shrunk down the rest of the coins. Even the US Mint admits that the cost of producing a penny in 2007 could be as high as 1.4 cents. Thus, it couldnt affect government expenditures or trigger widespread inflation. The cost of producing them is higher than face value. The Mint made nearly 6 billion pennies in 2012 and lost a cent on every single one of them. She is a member of the American Numismatic Association (ANA) and holds several certifications. However, a newer study by economist Robert Whaples, published by the Eastern Economic Journal in 2007, contradicts Lombras findings. 3. Anti-penny advocates are fond of pointing out that today, the penny costs taxpayers more to produce than its actually worth. Without pennies, the Mint would be forced to make more five-cent pieces. Here are both re. View full document. Post date: 20 yesterday. A pro-penny group backed by economist Raymond Lombra testified before the Senate Banking Committee in 2006 that his careful statistical analysis of store prices showed that rounding cash sales to the nearest nickel would cost consumers billions in extra costs. Both sides in the penny debate make some good points, and the solution is far from being an easy decision. [3], For more on US currency, explore Currency and the US Presidents.. And in 2010, the Mint introduced a permanent new reverse depicting a Civil War-era Union shield. Economist Robert Shapiro estimated in a 2017 paper that it costs 55 times more to make pennies than the value of each coin itself. If you have ten pennies for one reason or another, they will still be accepted and you can use them. The process of making pennies is costly both financially and environmentally. To be fair, the current production cost is down from the 1.66 cents it cost in 2014, and the continuation of a years-long trend and efforts by the Mint to increase efficiency as well as . Those profits result from seigniorage, a positive cash flow that occurs when coins face value exceeds the cost of minting them, rather than the other way around. After all, we still need the coin for a number of reasons. This question has been debated for years, with people arguing for and against its elimination. And its very easy for a child to say, Will you help me support this nonprofit, will you give me your pennies? [6] Elementary school students in Los Angeles, CA, gain significant leadership and civic engagement experience from USCs Penny Harvest program by choosing how to donate the money they raise. 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. Proponents of the penny argue that shopkeepers would tend to round up, increasing prices. We strive to write accurate and genuine reviews and articles, and all views and opinions expressed are solely those of the authors. I will now list them and also describe them. [1] 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. Pennies are no longer made from pure copper . Despite what the old song says, pennies dont really come from heaven. Dominic Townsend is a successful article author based in New York City. The alternative to the penny . Common Cents, an organization devoted to keeping the penny, runs an annual Penny Harvest and supports the penny largely because of its importance to charities. Charities rely on penny drives as an easy way to raise funds, and pro-penny groups argue that the elimination of the coin would have a negative impact on charitable donations. It will be a lot easier just to keep the penny because then we don't have to tell everyone to change. ", ProCon.org. While we do our best to keep these updated, numbers stated on this site may differ from actual numbers. Another piece of evidence against Lombras claims comes from Canada, which stopped minting its penny in 2013. It's a Money Loser for Retailers. 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. So instead of penny drives, charities could start holding nickel drives, putting out bottles or wishing fountains to collect the new useless coins. Despite all the arguments for retiring the penny, the majority of Americans are in favor of keeping it. ProCon.org. However, it would hit low-income Americans especially hard. [15], Common Cents, a nonprofit based in Dallas, TX, has run a Pennies from the Heart program for 20 years, and the student-led efforts have raised over $850,000 for local charities. You can also make some hand-stamped bling like this . Please refer to the appropriate style manual or other sources if you have any questions. http://www.moneycrashers.com/get-rid-penny-reasons/Are you in favor of getting rid of the penny? 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. Furthermore, since crypto coins are divisible into smaller amounts than fiat currency, it would be easier for people to pay for items in exact amounts rather than rounding up or down to the nearest full denomination. Most Americans want to keep the penny. 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. None of these changes caused any significant problems in commerce. The discontinuation of the penny would require significant turnover. Removing the penny removes grades of information that could be available to investors, consumers and manufacturers. The melt value of pennies ranges from more than two cents for the pre-1982 copper . This is only the opening salvo in the Great Penny Debate, however. Consider the con arguments from NPRs Planet Money reporter Greg Rosalsky. What Is a Financial Statement Restatement? Their reasons differ. 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. Susan Headley is a well-respected coin collecting expert and writer with over 30 years of hands-on numismatic experience. Proponents of the penny argue that this small change could be felt most strongly by low-income Americans and according to a CNBC survey, nearly half of adults agree. Learn how to keep it safe. 7 Reasons to Get Rid of the Penny 2022-11-18. Dont get rid of it! The US Mint shipped 8.4 billionpenniesfor circulation in 2017, more than all nickels (1.3 billion), dimes (2.4 billion), and quarters (1.9 billion) combined. 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. Among other things, we may receive free products, services, and/or monetary compensation in exchange for featured placement of sponsored products or services. Producing the penny costs taxpayers money: In 2021, each penny produced cost 2.10 cents to make and distribute. Report this Content. The primary reason is the soaring cost of metals. According to William Safire, in 1950 a penny would buy what a dime would buy today. 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. How Many Coins Are in a Regular Roll of Coins? In some respects, we can make the same argument for the paper dollar. 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. The penny is no longer a useful form of currency and its continued existence is costing the US government money. Currently there's no action being taken on the elimination of the penny. )," YouTube.com, Sep. 6, 2010, Greg Mankiw, "Get Rid of the Penny!," gregmankiw.blogspot.com, Apr. [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. In 2020, the Mint shipped out more pennies than nickels, quarters, and dimes put together over 8 billion coins. For every dollar's worth of coins it shipped out the Mint made 45 . "Retirement." One 2012 survey found that more than two-thirds of the respondents wanted Uncle Sam to keep making them. For instance, penny supporters claim that eliminating the coin could harm the economy or hamper charities in their fundraising efforts. The United States has eliminated small denomination coins in the past with relatively little trouble. There's been a debate brewing over the value of the penny, and conversations have grown amid a national coin shortage. A HuffPost/YouGov poll conducted in January found that only 34 percent of Americans are in favor of eliminating the penny, while 51 . [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. Pennies don't last forever, and the US Mint explains that the copper surface can corrode away after a few years. Making pennies wastes natural resources and is toxic to people and the environment - Pennies are 3 percent copper, and 97 percent zinc and are primarily made from virgin ore. Making pennies from . A low-denomination coin helps keep prices in check. He is also heavily involved in numerous charities and volunteer efforts throughout the city. It takes a great deal of energy to produce pennies and according to the Environmental Protection Agency, it releases 107 million pounds of carbon dioxide (CO2) into the atmosphere every year while transporting them. 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. Get DIY project ideas and easy-to-follow crafts to help you spruce up your space. It's the $2 bill and it's the rarest small-denomination currency in circulation, representing about 1 percent of our money. The coin shortage could be a rallying cry for a long-running movement that has lost steam in recent years: Kill the penny! One-cent pieces account for nearly three-fourths of the coins now being made by the federal government and critics maintain that the Mints facilities and workforce could be used to better advantage, and much more profitably, by devoting them instead to higher-value coins that yield substantial profits. 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. For these types of payments, rounding to the nearest nickel would cost consumers an extra 2021 dollars annually. We also share information about your use of our site with our social media, advertising and analytics partners. 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. Accessed Oct. 21, 2020. It was first authorized in 1776 to help fund the Revolution. Eliminating pennies would save time at the point of purchase without hurting customers or businesses financially. The cost of producing them is higher than face value. 10 Rarest and Most Valuable Coins in the World, Early Jefferson Nickel Values 1938 - 1964. Instance penny supporters claim that the penny still holds value and should be kept in circulation. He believes that knowledge is key to understanding and progress, which he strives to bring to his readers through his work. Thats what happened in Canada, where the Salvation Army and numerous other charities held drives to collect discontinued pennies in 2013. Its giving store owners even more reasons to avoid handling cash as much as possible. 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. In 2013 alone, this cost taxpayers $105 million. However, while many people are calling for the pennys retirement, others are working just as hard to keep the coin in circulation. The impact of the loss of the penny on price flexibility depends on its implementation. Amy Livingston is a freelance writer who can actually answer yes to the question, "And from that you make a living?" Accessed Oct. 21, 2020. 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). 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. First, consumers benefit with a low denomination coin. However, overall, the Mint is a profit-making machine. This means users can store and transact with their coins without interference from third parties such as banks or governments. We Have a Precedent for Eliminating Worthless Coins. 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. And in February 2014, President Barack Obama argued during a YouTube chat that pennies were obsolete and a symbol of U.S. government waste. Another significant change in U.S. coinage occurred without any catastrophic effects on commerce. More recently, a 2017 paper by economist Robert Shapiro estimated that each penny only gets used around twice per year, or 55 times over its lifespan. As a result, the Mint has to keep making more pennies. https://www.britannica.com/story/pro-and-con-penny. Eliminating the penny, they argue, would be disrespectful to his memory. To access extended pro and con arguments, sources, and discussion questions about whether the penny should stay in circulation, go to ProCon.org. Read more to learn about the potential benefits of eliminating the penny. Halting production of the coin is becoming a more and more popular topic among anti-penny advocates. They come from mines in the earth zinc mines, mostly, because pennies are more than 97% zinc. 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. Make sure you have some later too. This organization has conducted polls showing that more than two-thirds of Americans favor keeping the penny. 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. It may even save money in production costs, as fewer pennies would need to be minted. The difference between the face value of a coin and and the actual cost to make it is known as seigniorage. The composition of the coins consisted of an outer shell made out of 75% copper and 25% nickel bonded to a core of pure copper. Supporters of the penny dont buy this argument. When people start leaving a monetary unit at the cash register for the next customer, the unit is too small to be useful. [19] Former US Mint Director Philip Diehl said, [T]he value of a penny has shrunk to the point that, if you earn more than the minimum wage, youre losing money stopping and picking up a penny on the sidewalk. [20], Comedian John Oliver noted, Two percent of Americans admitted to regularly throwing pennies in the garbage, which means the US Mint is spending millions to make garbage. [21] Two-thirds of the billions of pennies produced are never seen in circulation again once they reach a consumer via the bank. Those who think we should keep the U.S. penny cite the following arguments to support their position. References to products, offers, and rates from third party sites often change. 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. One-cent pieces account for nearly three-fourths of the coins now Pennies are so hard to spend that many people dont even bother they just store them all in jars, or even throw them away. In fact, during that year the Mint accidentally made 40 copper pennies! We should get rid of pennies because it cost less and is useless but it could be helpful, I think we should keep the penny because it is sill money, what the creep who ever wrote these are all bum hahahahaha. "FAQs: How Issuers Work with DTC." Their reasons differ. In fact, it has been struck in greater numbers than all other coins combined including not just U.S. coins but the coins of all other countries throughout recorded history. If 77.1% of you voted to keep the penny in our 1st poll I bet we can . 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. However, this only works if the coins actually do circulate and pennies, as noted above, often dont. The penny costs an irrational amount of money compared to what it's worth. A cent that, most of the time, goes unused. Nickels also cost more to make than their face value about $0.07 apiece so the Mint loses even more money on each nickel it produces than it does on each penny. The typical store doesn't even have them available for purchase or give them out in change - they flat-out refuse! But others have a vested interest in keeping the penny alive. That means the cost of some items would go up. Some stores are even refusing to accept cash altogether. However, he also stresses that even if prices did increase, the difference would be so tiny it couldnt possibly affect the CPI. It cost 2.4 cents to make the penny. A 2006 Coinstar poll found that 33 percent of American men and 22 percent of American women do not value spare change. Because pennies are worth so little, theyre much heavier than any other coin in proportion to their value. (This is true for lots of U.S. ,Sitemap,Sitemap, richard sargent obituary new providence nj. Pennies are so close to worthless that many people argue its time to do away with them altogether. 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 . With more consumers moving toward contactless payment methods, news sources from Fortune to NPR began asking: Is the penny finally on its way out? Managing Editor Top 3 Pros and Cons,", ProCon.org, "Should the Penny Stay in Circulation? He has written for many top publications, such as The New Yorker, Huffington Post, and The Wall Street Journal. Despite what the old song says, pennies don't really come from heaven. [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. As useless as pennies are, most of us cant avoid them. Danielle DeLee began writing in 2010. Nickels cost even more to make - If we eliminate the penny, we will need more nickels in circulation. 10 reasons why we should keep the penny. "Penny Stock Rules." But whether or not you believe picking up that penny will bring you luck, one thing it definitely wont bring you is wealth. The total amount doesn't end when coins and citizens are debating the penny and whether or not it should be kept. People will start rounding up to five cents. While every effort has been made to follow citation style rules, there may be some discrepancies. But the price of copper receded, and plans for the change were dropped. The debate over whether or not to get rid of the penny has been going on for years. The nations earliest one-cent pieces aptly called large cents by collectors were big, bulky pure copper coins roughly the same size and weight as half dollars. Economist Greg Mankiw of Harvard University argues that pennies are simply no longer useful as a means of exchange: When people start leaving a monetary unit at the cash register for the next customer, the unit is too small to be useful.. If you pay with credit or debit card, it is $7.12. 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? Accessed Oct. 21, 2020. Keeping the Penny. Jarden and the zinc industry are fighting to keep the penny. 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.

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