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. 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. 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. Copper, which makes up the other 2.5 . 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. [27], Rounding transactions to the nearest nickel instead of using pennies wouldnt harm consumers or stores. Thats what happened in Canada, where the Salvation Army and numerous other charities held drives to collect discontinued pennies in 2013. In 2020, the penny debate gained new attention as the coronavirus pandemic led to a nationwide coin shortage. His mission is to use his platform as an author to bring awareness and perspective on important issues affecting everyday life. That adds up to $2,100,000,000 every generation of only pennies. That means the cost of some items would go up. And just five years after that, in 1864, the government changed the coins content again this time to bronze, an alloy of copper, tin and zinc and slenderized it further to 3.11 grams, a weight that remained unchanged until 1982. procon@eb.com, 2023 Encyclopaedia Britannica, Inc. Act, which would stop the minting of the penny for ten years to assess the repercussions. [16] The Ms. Cheap Penny Drive for Second Harvest in Tennessee raised enough to pay for 316,039 meals for the hungry in 2017. The cost of producing them is higher than face value. 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. Mark Weller is ACC's executive director. Since 2006, Jarden has given $1.2 million to Americans for Common Cents (ACC). Their reasons differ. Management decided that losing a cent or two on most transactions was better than having long lines of customers waiting for change. 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. Want to learn more? Author: www.thebalancemoney.com. Lombra did his careful analysis by simply looking at a convenience stores prices and assuming that each consumer would buy three items in one visit. We Have a Precedent for Eliminating Worthless Coins. When the Baby Boomers were young, a penny still had some value. If we keep the penny prices will go up to five cents. Many people thought that 2009, the 100th anniversary of the Lincoln cent, should have been the last year of penny manufacture. References to products, offers, and rates from third party sites often change. No, dropping the Penny won't cost the government more. You can easily get rust off a penny using vinegar and salt. 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. At no point did it rise above its historical average of 3.2%. [7] Raymond Lombra, Professor of Economics at Pennsylvania State University, says the extra rounding charges would exceed $600 million annually and would be regressive, affecting the poor and other disadvantaged people groups disproportionately. [9], One study found that penny rounding in Canada costs grocery store customers an estimated 3.27 million Canadian dollars (2.5 million USD) annually. As debate continues on both sides, let's explore 8 reasons why we should keep or eliminate it. 9 Reasons Why America Should Get Rid of the Penny - The Balance 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! It's a Money Loser for Retailers. Instance penny supporters claim that the penny still holds value and should be kept in circulation. Numerous Americans are in favor of keeping it due to sentimental value, while others say it is just too costly. The less a person makes the more the saying "every penny counts" rings true. Accessed Oct. 21, 2020. Essay on Why Should We Use Pennies - 554 Words | Bartleby "Current Market." Accessed Oct. 21, 2020. [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. Benefits of Keeping the Penny | Bizfluent [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. Whatever the rationale, 58 percent of men and 73 percent of women wanted to keep the penny in 2006, according to a Coinstar poll. After 1962, pennies were no longer made of copper or bronze but instead were minted from 97.5% zinc with 2.5% copper coating. The great debate at PAK: Keep the penny, abolish the penny 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. 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. Pennies are still good but, many people think not. 5. Dominic Townsend is a successful article author based in New York City. Halting production of the coin is becoming a more and more popular topic among anti-penny advocates. Would love your thoughts, please comment. In addition, zinc is toxic in high doses and small amounts can contaminate water and soil in the area surrounding ore roll producing pennies. 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. Accessed Oct. 21, 2020. Argumentative Essay: Keep The Penny | ipl.org - Internet Public Library A graduate of NYU, he has an MA in English literature and loves literature from all ages. Franklin is also credited with the saying, A penny saved is a penny earned. [35], 3. 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. 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. The coin shortage could be a rallying cry for a long-running movement that has lost steam in recent years: Kill the penny! Remember, pennies cost 2 more than how much their worth, while nickels cost 5 more than the nickel is worth. Most Americans want to keep the penny. However, it could be biased because of the differences between segments of the population that pay electronically and with cash. In June of this year, New York Times op-ed columnist William Safire wrote an article calling for the elimination of the penny. 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? Men are nearly twice as likely as women to favor dropping the penny (39% vs. 20%). Accessed Oct. 21, 2020. Some say the United States should stop using pennies because the cost of producing the coin is now higher than the value of the coin. This not only weighs down our pockets, but it also holds up the line while we mess around counting out coins. In fact, it costs almost a dime to make a nickel today. OTC Markets. For one thing, consumers benefit from having the penny. PDF 5th Grade Opinion Writing Prompt - uen.org How To Keep A Penny Essay - 473 Words | Cram 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). Keep Copper Pennies? - American Numismatic Association Chicago, Illinois 60654 USA, Natalie Leppard 9 "Centsible" Reasons to Get Rid of the Penny . The penny-pinching . 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. 10 reasons why we should keep the penny. While every effort has been made to follow citation style rules, there may be some discrepancies. 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 debate gained renewed attention when the coronavirus pandemic led to a nationwide coin shortage as consumers moved towards contactless payment methods. Or should the U.S. keep it's smallest coin? Without pennies, the Mint would be forced to make more five-cent pieces. 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. 327 views, 5 likes, 2 loves, 11 comments, 2 shares, Facebook Watch Videos from Mount Carmel Baptist Church: Join us as we send off our beloved brother in Christ Brother Carlton Pinney. Why We Should Kill the American Penny | PBS NewsHour 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. 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. 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. 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. While the one-cent, once-copper coin doesn't have the purchasing power it used to, Americans still have a hard time letting it go. There are precedents for getting rid of coins that are too small to use. It doesnt matter. There have been several other minor changes in the coin metal composition. The problem with abolishing coins - BBC Worklife Payments made with credit, debit, or old-fashioned checks are still settled down to the cent. To access extended pro and con arguments, sources, and discussion questions about whether the penny should stay in circulation, go to ProCon.org. From an economic standpoint, it simply doesn't make sense to continue producing these coins. 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. Last modified on July 2, 2018. Get DIY project ideas and easy-to-follow crafts to help you spruce up your space. People will start rounding up to five cents. Economist Robert Shapiro estimated in a 2017 paper that it costs 55 times more to make pennies than the value of each coin itself. 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 . Mining zinc and copper produces carbon dioxide emissions and pollutants, and uses vast amounts of energy. Some Hope Not," nytimes.com, July 29, 2020. The penny, a one cent coin, costs 2.41 cents to make, which is nearly 1.5 times what it's worth (source 1). Consider the con arguments from NPRs Planet Money reporter Greg Rosalsky. 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. Consumers using credit wouldnt be affected by this because their transactions could still be counted out to the cent. The group that conducted that survey Americans for Common Cents advocates retention of pennies, but impartial polls have come up with similar results. " 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. 4. Although originally made of pure copper, pennies today are composed of 97.5% zinc and 2.5% copper. The United States mint stopped minting pennies for general circulation after 2013 but cash transactions still make up less than 8% of all payments while credit and debit cards, as well as old-fashioned checks are used more often now than ever before according to Trading Economics. [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. Creating the penny releases C02 into the air. -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. This means users can store and transact with their coins without interference from third parties such as banks or governments. Ironically, getting rid of it might actually make it more difficult for people to donate money since fewer coins would be available. 1943 pennies were made out of a mixture of steel and copper, due to the war effort during World War II. Among other things, we may receive free products, services, and/or monetary compensation in exchange for featured placement of sponsored products or services. 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. These adjustments are not costless, so there is resistance from some parties who do not want to pay transition costs. Add it all up, and it comes to more than 25 million hours wasted each year. In 2017, Senators John McCain and Mike Enzi introduced S.759 Currency Optimization, Innovation and National Savings (or C.O.I.N.S.) There are many anti-penny advocates that scoff at its existence, arguing that it costs more to mint pennies than the coins are worth. 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 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. Why or why not? Anti-penny advocates scoff at this argument, pointing out that Lincoln would still remain on the $5 bill, which is actually useful to consumers. The current cost for manufacturing a nickel is 7.29 cents per coin. Now put it to work for your future. The penny has practically no value and should be taken out of circulation just as other coins have been in US history.