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. They are also bf and environment this doesnt make your hands very very very stinky I dont like the smell of metal. [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. 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. The total amount doesn't end when coins and citizens are debating the penny and whether or not it should be kept. Item 2 (1) The saying goes, "Find a penny, pick it up. (2) All day long In Canada, at least, eliminating the penny has not led to a widespread increase in prices. Explain your answer(s). However, once stores stop accepting pennies, consumers will have even more incentive to donate the coins to charity because they wont be able to use them anywhere else. At the G-8 summit next week, the Brits and the French -- even the French! " THE PENNY DEBATE" written by Brad Andrews explains to the readers the important points and reasons on why we should keep the penny and important points and reasons as to why we should get rid of the penny. We may have financial relationships with some of the companies mentioned on this website. There are notable points that both sides make. Dominic is passionate about writing stories that have the power to make a difference in peoples lives. The cost of making pennies in 2019 was 1.99 cents per coin. However, the fact that this poll was conducted by a pro-penny group suggests that the questions might be somewhat biased toward the pro-penny side. 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. It is unclear whether the rounding would be up or down. Pennies are no longer made from pure copper . [ 34 ] 5. Why or why not? When the Baby Boomers were young, a penny still had some value. 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. 10 reasons why we should keep the penny - look.perfil.com Since 2006, Jarden has given $1.2 million to Americans for Common Cents (ACC). [5], Mark Weller, Executive Director of the pro-penny group Americans for Common Cents, says, The alternative to the penny is rounding to the nickel, and thats something that will negatively impact working families every time they buy a gallon of gas or a gallon of milk. [6], The US Federal Reserve found that minorities and low-income people are more likely to use cash than credit cards. Top 3 Pros and Cons. A Penny For Your Thoughts: Why Pennies Are Still Necessary Or will the Law of Supply and Demand keep putting upward pressure on metal prices and make it impractical to keep producing cents of any kind? Many people thought that 2009, the 100th anniversary of the Lincoln cent, should have been the last year of penny manufacture. Numerous Americans are in favor of keeping it due to sentimental value, while others say it is just too costly. Abraham Lincolns face replaced an image of Lady Liberty on the penny in 1909, the 100th anniversary of his birth, making him the first real person featured on a regular-issue American coin. The government accountability office reported in 2017 that roughly two-thirds of pennies dont circulate, meaning they are sitting in storage and losing their value over time. Pennies are still good but, many people think not. 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. According to Americans for Common Cents, this will lead to a rounding tax. In other words, stores will deliberately manipulate their prices to ensure transactions are always rounded up instead of down. Pennies are so close to worthless that many people argue its time to do away with them altogether. 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). We can not guarantee its completeness or reliability so please use caution. Discover what happens, how to avoid it, and what you can do if it's too late. 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? In 1990, he testified before the Senate Banking Committee that his careful statistical analysis of prices showed that rounding cash sales up or down to the nearest nickel would cost consumers around $600 million per year (around $1.2 billion in 2021 dollars). Why America Should Get Rid of the Penny - Ontopwiki Please refer to the appropriate style manual or other sources if you have any questions. According to the Royal Mint, there are 11,430m 1p coins (worth 114.29m) and 6,714 2p . In 2017 it earned almost $400 million in profits producing circulating coins. Opinion | Abolish the Penny - The New York Times 16, 2015, United States Mint, "Fun Facts Related to the Penny," usmint.gov (accessed July 2, 2018), APMEX, "The 1909-S VDB Lincoln Cent the King of Lincoln Cents," apmex.com (accessed July 2, 2018), United States Mint, "History," usmint.gov, June 19, 2018, Jennie Cohen, "10 Things You Didn't Know about the Penny," history.com, Mar. Steel and aluminum are two alternative metals that have been mentioned. 10 reasons why we should keep the penny. 10 reasons why we should keep the penny - theflowerfall.com Later, in 1944, the Mint switched to making pennies out of zinc-bronze alloy. News sources such as NPR began speculating whether the penny would finally be retired or if crypto possibilities might replace it. Top 3 Pros and Cons." Post date: 20 yesterday. 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. "Current Market." We should be keeping the penny! 3. Accessed Oct. 21, 2020. The U.S. One Cent coin, or penny, has almost no purchasing power today. Keep Copper Pennies? - American Numismatic Association Any action you take based on the information found on cgaa.org is strictly at your discretion. shutterstock.com Around 8% of coppers are thrown in the bin every year. In 2020, the Mint shipped out more pennies than nickels, quarters, and dimes put together over 8 billion coins. 4. I think it human nature to maintain status quo until it becomes a crisis. People will start rounding up to five cents. U.S. Securities and Exchange Commission. We Won't Forget President Lincoln. Copper, which makes up the other 2.5 . Here are both re. After all, we still need the coin for a number of reasons. If you have ten pennies for one reason or another, they will still be accepted and you can use them. 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. November 29, 2022; did jesus walk on water before or after his resurrection . That adds up to $2,100,000,000 every generation of only pennies. The melt value of a zinc penny is one-half of a cent. 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. They come from mines in the earth zinc mines, mostly, because pennies are more than 97% zinc. Their reasons differ. For example, a pizza shop that sells a slice of pizza for $1.98 might start charging $2.00 instead. It's a Money Loser for You. (4) Considering that the penny has virtually no purchasing power, it does nothing except add unnecessary weight to our pockets and purses. 10 reasons why we should keep the penny. Simply mix one tablespoon of salt with two tablespoons of white vinegar, then submerge the penny in the liquid for a few minutes. OTC Markets. In all, it lost $58 million and the Mint, keep in mind, is a federal agency that traditionally makes money in more ways than one. In June of this year, New York Times op-ed columnist William Safire wrote an article calling for the elimination of the penny. Accessed Oct. 21, 2020. The penny has been around for centuries, but it may be time to say farewell. What Are Elastic, Unitary and Inelastic How to Approach Change in an Organization. The problem was resolved by reducing the size of the cent and changing its composition from copper to an alloy of copper and nickel. In 1943, the Mint produced cents made of zinc-coated steel in order to conserve copper, a metal vitally needed for military uses during that pivotal year at the height of World War II. The U.S. Mint does lose money on pennies and nickels. The penny has practically no value and should be taken out of circulation just as other coins have been in US history. Her areas of writing expertise include economic theory and applications, Russian culture and scuba diving. 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. The cost of producing them is higher than face value. ProCon.org. 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. procon@eb.com, 2023 Encyclopaedia Britannica, Inc. PDF The Value of a Penny (This is true for lots of U.S. ,Sitemap,Sitemap, richard sargent obituary new providence nj. [16] The Ms. Cheap Penny Drive for Second Harvest in Tennessee raised enough to pay for 316,039 meals for the hungry in 2017. U.S. Securities and Exchange Commission. 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. Removing the penny removes grades of information that could be available to investors, consumers and manufacturers. The discontinuation of the penny would require significant turnover. Susan Headley is a well-respected coin collecting expert and writer with over 30 years of hands-on numismatic experience. 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. We also share information about your use of our site with our social media, advertising and analytics partners. [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. There's been a debate brewing over the value of the penny, and conversations have grown amid a national coin shortage. In conclusion we should get rid of the penny. There are many anti-penny advocates that scoff at its existence, arguing that it costs more to mint pennies than the coins are worth. I was recently given over 10000 wheat back Lincoln Cents for a YN program we run through the Pennsylvania Association of Numismatists. The price of zinc, which currently composes 97.5 percent of a penny, has tripled over the past 15 years. 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. She has written about personal finance and shopping strategies for a variety of publications, including ConsumerSearch.com, ShopSmart.com, and the Dollar Stretcher newsletter. https://www.britannica.com/story/pro-and-con-penny. We're Moving Away from Currency. Consider how you felt about the issue before reading this article. That adds up to a loss of over $61 million for that year alone. 4. [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. Economist Robert Shapiro estimated in a 2017 paper that it costs 55 times more to make pennies than the value of each coin itself. 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. The impact of the loss of the penny on price flexibility depends on its implementation. Producing the penny costs taxpayers money: In 2021, each penny produced cost 2.10 cents to make and distribute. It doesnt matter. Even the US Mint admits that the cost of producing a penny in 2007 could be as high as 1.4 cents. [27], Rounding transactions to the nearest nickel instead of using pennies wouldnt harm consumers or stores. 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 . How Many Coins Are in a Regular Roll of Coins? 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. 3. Should the Penny Stay in Circulation? - Top 3 Pros and Cons - ProCon.org They argue that eliminating it could hamper charities and fundraising efforts, as people feel more generous when they have coins to give away. It's clear that the modern penny is no longer necessary in our financial system. The penny helps keep high prices in check. The existence of pennies helps raise a lot of money for charities. i think we should keep the penny so when our kids our older they will know what a penny is yaaaaaaaaaaaaaaaaaaaaaa. People think we should not make pennies because they cost 2 cents to make. Authority to discontinue pennies rests with Congress and so far, that august body has been gripped by indecision as it ponders conflicting arguments by lobbying groups on both sides of the issue. This means users can store and transact with their coins without interference from third parties such as banks or governments. In recent years, a debate on whether or not America should keep the penny has arisen. The Mint made nearly 6 billion pennies in 2012 and lost a cent on every single one of them. Want to learn more? In 2010, it cost 1.67 cents to produce each penny. She holds a Bachelor of Arts in economics and international studies from Yale University. [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. Most Americans want to keep the penny. 2023 Leaf Group Ltd. / Leaf Group Media, All Rights Reserved. Eliminating pennies would save time at the point of purchase without hurting customers or businesses financially. 7 Reasons to Get Rid of the Penny | The Saturday Evening Post Franklin is also credited with the saying, A penny saved is a penny earned. [35], 3. The ubiquitous one-cent coin has been a part of our everyday lives for over two centuries - and some argue that it's time to get rid of it. There are precedents for getting rid of coins that are too small to use. Shopkeepers would have to either change the prices on all of the items in their inventories or reprogram registers to round automatically when an item is charged. 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. He has written for many top publications, such as The New Yorker, Huffington Post, and The Wall Street Journal. The penny, a one cent coin, costs 2.41 cents to make, which is nearly 1.5 times what it's worth (source 1). 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 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. 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. Companies would need to update their price catalogs. http://www.moneycrashers.com/get-rid-penny-reasons/Are you in favor of getting rid of the penny? 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. If we keep the penny prices will go up to five cents. All these toxic metals can contaminate water, soil, and plants in the area surrounding the mine. MAKE JEWELRY. Without pennies, the Mint would be forced to make more five-cent pieces. Consider the con arguments from NPRs Planet Money reporter Greg Rosalsky. No, dropping the Penny won't cost the government more. To begin with, the Mint itself cant impose such a death penalty. Since the penny costs 0.26 more than face value to [31][32][33], 2. American Numismatic Association Consumers using credit wouldnt be affected by this because their transactions could still be counted out to the cent. Although debate continues today about whether we should get rid of the penny entirely or not, its long history is something worth noting and its clear that it has undergone some monumental changes over time from its composition to its patterns on both sides - which makes it an interesting part of our nations history. For all its current problems, the penny has a long and proud tradition dating back to 1793, when one-cent pieces were the very first coins produced by the fledgling U.S. Mint. Because pennies are worth so little, theyre much heavier than any other coin in proportion to their value. Men are nearly twice as likely as women to favor dropping the penny (39% vs. 20%). The Pros And Cons Of Abolishing The Penny | ipl.org As the U.S. Mint explains, the copper surface of a penny accounts for only 2.5% of its metal content. 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. The typical store doesn't even have them available for purchase or give them out in change - they flat-out refuse! Commerce continued without any major hiccups, even though the one-cent copper coin suddenly shrunk from a hefty, over an inch in diameter piece of copper that weighed almost 11 grams, to a penny that was less than half the weight and 40% smaller. This question has been debated for years, with people arguing for and against its elimination. According to an old superstition, its good luck to find a penny on the sidewalk. Will todays cent get the same kind of reprieve? The penny is an interesting coin to discuss. One problem with this argument, according to penny proponents, is that if there were no pennies, the Mint would have to produce more nickels. Unlike its hefty predecessor, it had much less value as metal than as money. However, it doesnt say what those reasons are. Instead, the coins will be gradually pulled out of circulation. After reading the pros and cons on this topic, has your thinking changed? They are good for societies that help with cancer, fundraiser, etc. Supporters of the penny dont buy this argument. Author: www.thebalancemoney.com. If we were to get rid of the penny, cash transactions would be rounded to the nearest nickel. 9 Reasons Why America Should Get Rid of the Penny - The Balance Also the United States loses 1.8 cents for every penny being made. The Fascinating Journey of the United States Penny, Penny Stocks Trading Guide: A Beginner's Primer, Creating an LLC NJ: A Simple, Step-by-Step Guide. Copyright 2023 AMAC, Inc. / AMAC Senior Resources Network. 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. The United States should continue the production of the penny. To access extended pro and con arguments, sources, and discussion questions about whether the penny should stay in circulation, go to ProCon.org. People who get them in change during the day often dump them in mayonnaise jars, sugar bowls or drawers when they empty their pockets at night. Get tips on managing costs, finding financial assistance & more! In 2010, it cost 1.67 cents to produce each penny. 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. In 1965 the U.S. Mint stopped making 90% silver dimes, quarters, and half-dollars and changed them over to base metalcladversions. The penny costs an irrational amount of money compared to what it's worth. Its possible that what happens to the penny could end up depending not on the law, but on decisions made by businesses. Through careful analysis of 200,000 convenience store transactions, Whaples concluded that sales taxes and other fees charged to consumers were slightly ahead of prices rounded to the nearest nickel which meant it couldn't possibly affect consumer spending or trigger widespread inflation - two claims made by Lombra. However, other arguments are sentimental, having to do with the way people feel about the coin. He believes that knowledge is key to understanding and progress, which he strives to bring to his readers through his work. I personally think that we should keep pennies for these reasons. The cost of pennies is a minor problem. In theory, a single penny could be used for hundreds or thousands of transactions before it drops out of circulation. Americans have a love-hate relationship with pennies. However, a newer study by economist Robert Whaples, published by the Eastern Economic Journal in 2007, contradicts Lombras findings. Essay on Why Should We Use Pennies - 554 Words | Bartleby The United States penny has had a fascinating journey since entering circulation. Is It Time To Kill The Penny? : Planet Money : NPR 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. Should We Get Rid of the Penny? - Scholastic This cost includes the metal content and the labor used to produce them. Would love your thoughts, please comment. The current cost for manufacturing a nickel is 7.29 cents per coin. Americans Oppose Abolishing the Penny," theharrispoll.com, Sep. 22, 2015, US Department of the Treasury, "Resource Center: Denominations," treasury.gov, June 15, 2018, John McCain, "Senators John Mccain & Mike Enzi Reintroduce the Coins Act to Save Billions in Taxpayer Dollars," mccain.senate.gov, Mar. 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. That means the cost of some items would go up. 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. In 2021, the Mint made 7.60 billion pennies, costing taxpayers $145.8 million. Last modified on July 2, 2018. How To Keep A Penny Essay - 473 Words | Cram Pennies Argumentative Essay - 605 Words | Studymode Vending machines dont accept them, and neither do most parking meters. News sources such as NPR began speculating whether the penny would finally be retired or if crypto possibilities might replace it. Should We Get Rid of the Penny? - Reasons to Keep It vs - YouTube A 2015 Harris poll shows that 51% of Americans favor keeping the penny, while just 29% think we should eliminate it.

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