10 reasons why we should keep the penny

In 2017 it cost the U.S. Mint 1.8 cents to make each penny and 6.6 cents for each nickel. And aluminum cents wouldnt be entirely new. "FAQs: How Issuers Work with DTC." In this blog post, we explore the potential of cryptocurrencies to replace the penny. In 2009, four different cents were issued with images representing key segments of Lincolns life. -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. Pro and Con: Pennies | Britannica [25] A California company called Mikes Bikes has banned the penny from its registers because Making pennies wastes natural resources [and] is toxic to people and the environment. [26], The use of pennies in paying for goods and making change adds time to sales transactions. Or should the U.S. keep it's smallest coin? In 1962, it removed tin from the alloy, changing it from bronze to brass. 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. Accessed Oct. 21, 2020. Millions of consumers also oppose the cents elimination on economic grounds. None of these changes caused any significant problems in commerce. Life Without Pennies. Will a suitable substitute be found? The price of zinc, which currently composes 97.5 percent of a penny, has tripled over the past 15 years. Cash transactions there are now rounded up or down to the nearest $0.05. While we do our best to keep these updated, numbers stated on this site may differ from actual numbers. (4) Considering that the penny has virtually no purchasing power, it does nothing except add unnecessary weight to our pockets and purses. ProCon/Encyclopaedia Britannica, Inc. She also maintains a personal blog. Aside from its Lincoln portrait, though, it has undergone a number of major changes in design and composition. 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. It may even save money in production costs, as fewer pennies would need to be minted. He believes that knowledge is key to understanding and progress, which he strives to bring to his readers through his work. Vending Machines Don't Want Them. 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. This not only weighs down our pockets, but it also holds up the line while we mess around counting out coins. 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. Numerous Americans are in favor of keeping it due to sentimental value, while others say it is just too costly. As debate continues on both sides, let's explore 8 reasons why we should keep or eliminate it. 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. 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. In 1959, the 150th anniversary of Lincolns birth, this wheat-ears reverse gave way to a likeness of the Lincoln Memorial. In 2010, it cost 1.67 cents to produce each penny. In fact, it costs almost a dime to make a nickel today. The discontinuation of the penny would require significant turnover. Reduced coin usage linked to the pandemic has already had an impact. The penny is an interesting coin to discuss. Maybe this is another consideration that the U.S. government should look at. Read our guide on how to clean pennies. And nickels cost 10 cents to make. Why Keep The Penny? - AMAC 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. [23], Making pennies also has environmental consequences from mining and transportation. The penny has increased to 7.6 million dollars a year to make a penny. As both stores and individuals stop keeping pennies on hand, banks wont need to supply as many. 5. [31][32][33], 2. 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. And as it grows ever easier for charities to accept donations electronically, coin drives are likely to play a diminishing role in fundraising. U.S. Securities and Exchange Commission. The very fact that pennies have so little value makes them useful to charities because people are happy to give them away. Learn how to keep it safe. In June of this year, New York Times op-ed columnist William Safire wrote an article calling for the elimination of the penny. As a result, the Mint has to keep making more pennies. 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. Preserving the penny keeps consumer prices down and avoids harming low-income households. 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. Several Chipotle restaurants tried this in 2012, but customers who had extra cents added to their bills complained. 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. 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. Also we should ks to make the government get his money out and thats over $8 million more than a penny is work. [3], For more on US currency, explore Currency and the US Presidents.. Whats less clear is why Americans are so committed to a coin with so little monetary value. The reason why is obvious. Without pennies, the Mint would be forced to make more five-cent pieces. 10 reasons why we should keep the penny - look.perfil.com 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. Feb 7, 2014, 08:12 AM EST | Updated Dec 6, 2017. In 1996, the Government Accountability Office reported that roughly two-thirds of pennies dont circulate at all. The melt value of pennies ranges from more than two cents for thepre-1982 copper pennies, to nearly a full cent for the copper-plated zinc pennies. Please refer to the appropriate style manual or other sources if you have any questions. These adjustments are not costless, so there is resistance from some parties who do not want to pay transition costs. Make sure you have some later too. The $2 bill, however, might be making a comeback. 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. It too had very little purchasing power at the end of its life. In 2020, the Mint shipped out more pennies than nickels, quarters, and dimes put together over 8 billion coins. Susan also belongs to the American Numismatic Society (ANS) and CONECA (error and variety coins club). Why We Should Get Rid Of The Penny - The Odyssey Online 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. Payments made with credit, debit, or old-fashioned checks are still settled down to the cent. PDF The Value of a Penny Now put it to work for your future. Companies would need to update their price catalogs. 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 Penny Should Abolish The Penny. Why we should keep the penny. Overall, continuing the use and manufacturing of pennies . According to CNBC, adults who make less than $30,000 per year are about four times as likely to make most of their purchases with cash as those who earn $75,000 or more. 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. In Defense of the Penny - InsideSources No, we can't, for some reason. Managing Editor 2023 Money Crashers, LLC. According to the American Council on Health and Science, penny accounts for 2.4% of all coins produced annually in the US with metal content including zinc ores that are hazardous to environment when released. 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. 4. Ironically, getting rid of it might actually make it more difficult for people to donate money since fewer coins would be available. Summary: Pennies are made of zinc and copper, and zinc can be harmful: Zinc mining and industrial use has negative . It's a Money Loser for You. Less than forty years later, the mint reduced the weight to 2.67 g and used a composition of 90% silver. 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. The penny should be abolished because it costs more to produce than it is worth . 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. In 1965 the U.S. Mint stopped making 90% silver dimes, quarters, and half-dollars and changed them over to base metalcladversions. Arguments for and Against Keeping the Penny - The Spruce Crafts Another significant change in U.S. coinage occurred without any catastrophic effects on commerce. Her areas of writing expertise include economic theory and applications, Russian culture and scuba diving. The melt value of a zinc penny is one-half of a cent. The impact of the loss of the penny on price flexibility depends on its implementation. 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. In 1792, Congress created a national mint authorized to make gold, silver, and copper coins, including the one-cent piece known as the penny. Of course, spending $0.018 to make a coin thats worth only $0.01 isnt necessarily a bad idea because coins are reusable. 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. At the time it was eliminated, the useless halfpenny could buy as much as 15 pennies can today. 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!!!! 6.9 Reasons Why America Should Get Rid of the Penny - The Balance. This is the least substantive argument in favor of keeping the penny, and yet, ironically, its probably the most effective. The penny was first minted in 1857. Theyre so hard to use that they end up stuffed in jars or abandoned on sidewalks. Remember, pennies cost 2 more than how much their worth, while nickels cost 5 more than the nickel is worth. The people who make less than $35,000 dollars a year need pennies. Consider how you felt about the issue before reading this article. Internal Revenue Service. And if a single penny is useless, a whole bunch of pennies isnt much better. Although the cost for printing a dollar bill is about five cents, only lasts an average of eighteen months. [27], As a result of that extra time per transaction, the average citizen wastes 730 seconds a year (12 minutes) paying with pennies. 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. In 2017, Senators John McCain and Mike Enzi introduced S.759 Currency Optimization, Innovation and National Savings (or C.O.I.N.S.) The US Mint produces coins as instructed byCongress, so a law would have to be passed by Congress and signed by the President in order for pennies to be removed from circulation. 7 Reasons to Get Rid of the PennyIt's a Money Loser for the Government. Pro-penny groups argue that even if pennies seem worthless, they actually add up to hundreds of millions of dollars in charitable donations each year. Want to learn more? 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. But the price of copper receded, and plans for the change were dropped. In 2021, the Mint made 7.60 billion pennies, costing taxpayers $145.8 million. 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. PDF Statement of purpose Focus and Organization Conventions The current cost for manufacturing a nickel is 7.29 cents per coin. (Also Nickels. The difference between the face value of a coin and and the actual cost to make it is known as seigniorage. The content on Money Crashers is for informational and educational purposes only and should not be construed as professional financial advice. In conclusion we should get rid of the penny. The Lincoln cent, now more than 100 years old, is by far the longest-running coin in U.S. history. Should We Make Cents? - CBS News Amy Livingston is a freelance writer who can actually answer yes to the question, "And from that you make a living?" But penny opponents point out that even if the Mint stops producing pennies, charities won't simply lose out - they'll gradually be pulled away as stores stop accepting pennies and consumers switch to other coins. 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. After 1962, pennies were no longer made of copper or bronze but instead were minted from 97.5% zinc with 2.5% copper coating. 10 reasons why we should keep the penny. Eliminating the penny, they argue, would be disrespectful to his memory. That means whenever the Mint produces a penny and sends it out to a bank, its losing money on the deal. It will be a lot easier just to keep the penny because then we don't have to tell everyone to change. [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. This cost includes the metal content and the labor used to produce them. A Dozen Money Facts You Should Know | Cheapism.com And since each nickel is worth five times as much as a penny, charities would gather five times as much money with each spare coin tossed into the jar. The penny costs an irrational amount of money compared to what it's worth. Is It Time To Kill The Penny? : Planet Money : NPR https://www.britannica.com/story/pro-and-con-penny. "Penny Stock Rules." Dominic Townsend is a successful article author based in New York City.

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