(Source 1) That is 60 million dollars we didn't need to lose, and 60 . As a result, the Mint has to keep making more pennies. In this blog post, we explore the potential of cryptocurrencies to replace the penny. Learn how to keep it safe. Learn how to protect yourself when the bank takes your car. 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. Eliminating pennies would save time at the point of purchase without hurting customers or businesses financially. The U.S. Mint does lose money on pennies and nickels. The penny is no longer a useful form of currency and its continued existence is costing the US government money. Chicago, Illinois 60654 USA, Natalie Leppard It may even save money in production costs, as fewer pennies would need to be minted. 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. However, a newer study published in 2007 by economist Robert Whaples in the Eastern Economic Journal contradicts Lombra's findings. This cost includes the metal content and the labor used to produce them. They dropped the penny and rounding happens just the way you learned in like 2nd grade. Franklin is also credited with the saying, A penny saved is a penny earned. [35], 3. Anti-penny advocates are fond of pointing out that today, the penny costs taxpayers more to produce than its actually worth. 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 penny costs 0.26 more than face value to Report this Content. 3. 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. 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. 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. Any action you take based on the information found on cgaa.org is strictly at your discretion. How Much Does it Really Cost (the Planet) to Make a Penny? Also the penny is a big part . She also maintains a personal blog. Even so, according to the US Mint, it costs about 2.4 cents to make one penny. It is unclear whether the rounding would be up or down. Some supporters of the penny point out that its the only coin bearing the image of Abraham Lincoln, probably our nations most revered president. 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. 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. Should the Penny Stay in Circulation? - Top 3 Pros and Cons - ProCon.org This not only weighs down our pockets, but it also holds up the line while we mess around counting out coins. If you pay with credit or debit card, it is $7.12. But others have a vested interest in keeping the penny alive. [16] The Ms. Cheap Penny Drive for Second Harvest in Tennessee raised enough to pay for 316,039 meals for the hungry in 2017. A dollar coin can last up to forty years. "Penny Stock Rules." People will start rounding up to five 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. Accessed Oct. 21, 2020. The alternative to the penny . Last modified on July 2, 2018. In Canada, at least, eliminating the penny has not led to a widespread increase in prices. Charities worry that if the nickel becomes the smallest denomination, then people will value change more. These arguments arent based on logic which, ironically, makes them much harder to counter. What Are Elastic, Unitary and Inelastic How to Approach Change in an Organization. I will now list them and also describe them. 10 reasons why we should keep the penny. Since 2006, Jarden has given $1.2 million to Americans for Common Cents (ACC). According to an old superstition, its good luck to find a penny on the sidewalk. 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. 10 reasons why we should keep the penny . shutterstock.com Around 8% of coppers are thrown in the bin every year. Halting production of the coin is becoming a more and more popular topic among anti-penny advocates. 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. In 2021, the Mint made 7.60 billion pennies, costing taxpayers $145.8 million. Dominic Townsend is a successful article author based in New York City. The change from brass, the previous composition, took place in 1982 as a cost-cutting measure because zinc was much cheaper than copper. 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). 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. As debate continues on both sides, let's explore 8 reasons why we should keep or eliminate it. 4. At a time when federal spending is under intense scrutiny, this strong public support seems somewhat surprising, for analysts say it now costs the U.S. Mint two cents double face value to make a single penny. 7 Reasons to Get Rid of the Penny 2022-11-18. If we were to get rid of the penny, cash transactions would be rounded to the nearest nickel. i think we should keep the penny so when our kids our older they will know what a penny is yaaaaaaaaaaaaaaaaaaaaaa. First, consumers benefit with a low denomination coin. That means the cost of some items would go up. The United States has eliminated small denomination coins in the past with relatively little trouble. [17], You cant buy anything for a penny; vending machines and parking meters wont accept them. MAKE JEWELRY. First of all, if the U.S. Mint stops producing pennies, they wont simply lose their value overnight. 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. [36], 6. And in 2010, the Mint introduced a permanent new reverse depicting a Civil War-era Union shield. 10 reasons why we should keep the penny - theflowerfall.com That adds up to $2,100,000,000 every generation of only pennies. Since the goal of any business is to make money, most prices would be rounded up, not . And as it grows ever easier for charities to accept donations electronically, coin drives are likely to play a diminishing role in fundraising. 9 " Centsible " Reasons to Get Rid of the Penny. None of these changes caused any significant problems in commerce. Producing the penny costs taxpayers money: In 2021, each penny produced cost 2.10 cents to make and distribute. They're Bad for the Environment. All these toxic metals can contaminate water, soil, and plants in the area surrounding the mine. 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. For example, the zinc metals lobby, and the Coinstar company (who make those change-counting machines in the grocery store) will both fight hard to keep the penny in production. A Dozen Money Facts You Should Know | Cheapism.com Unlike some other foreign governments, the penny remains legal tender in Canada. Most Americans want to keep the penny. Whaples, by contrast, analyzed actual data from more than 200,000 convenience-store transactions in seven states. Pennies are no longer made from pure copper . We're Moving Away from Currency. 30, 2012, Army & Air Force Exchange Service, "Retail & General FAQs," aafes.com (accessed July 2, 2018), David Kestenbaum, "What Is Seigniorage?," npr.org, Jan. 9, 2009, Business Wire, "Strong Support for the Penny in Recent Poll," businesswire.com, Apr. That makes them a much more cost-effective way to honor Lincoln than a penny that costs $0.018 to mint. Many people thought that 2009, the 100th anniversary of the Lincoln cent, should have been the last year of penny manufacture. OTC Markets. As useless as pennies are, most of us cant avoid them. In 1965 the U.S. Mint stopped making 90% silver dimes, quarters, and half-dollars and changed them over to base metalcladversions. [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. However, overall, the Mint is a profit-making machine. 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. 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 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. This means that taxpayers are losing money every time the mint produces a penny. She has written about personal finance and shopping strategies for a variety of publications, including ConsumerSearch.com, ShopSmart.com, and the Dollar Stretcher newsletter. How would removing pennies impact people who primarily rely on cash transactions? Copper, which makes up the other 2.5 . 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. Removing the penny removes grades of information that could be available to investors, consumers and manufacturers. This article was published on July 2, 2018, at Britannicas ProCon.org, a nonpartisan issue-information source. [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.
When A Girl Calls You Boss,
Why Does Professor Frink Say Glavin,
Phlebotomy Training Muskegon Community College,
This User Is Temporarily Banned From Using Kakaotalk,
Articles OTHER