PDF The Value of a Penny In response, some penny charities started holding nickel drives instead of penny ones, putting their faith in wishing fountains that accept useless coins. [29] An estimate from Citizens to Retire the penny says that the 107 billion cash transactions in the United States annually add up to 120 million hours of time between customers and employees at a cost of $2 billion to the US economy. 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. Their reasons differ. List two to three ways. However, a newer study published in 2007 by economist Robert Whaples in the Eastern Economic Journal contradicts Lombra's findings. 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. In 2010, it cost 1.67 cents to produce each penny. The penny costs an irrational amount of money compared to what it's worth. The penny is an interesting coin to discuss. And aluminum cents wouldnt be entirely new. Aaron notes in a Brookings Institution editorial that eliminating pennies would help with cash transactions as well, since it would make calculations easier without having to deal with fractions of cents. 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 . The answer, for a variety of reasons, is a resounding "yes.". Often, when we pay with cash at a store, the total amount doesnt end in a multiple of $0.05. Although some stores have decided to practice completely without pennies, an argument from Americans is that it's just common cents to keep them around. References to products, offers, and rates from third party sites often change. To access extended pro and con arguments, sources, and discussion questions about whether the penny should stay in circulation, go to ProCon.org. While every effort has been made to follow citation style rules, there may be some discrepancies. But others have a vested interest in keeping the penny alive. Whaples, by contrast, analyzed actual data from more than 200,000 convenience-store transactions in seven states. Later, in 1944, the Mint switched to making pennies out of zinc-bronze alloy. Aside from its Lincoln portrait, though, it has undergone a number of major changes in design and composition. 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. Should we keep the penny. Despite all this, surveys consistently show that most Americans dont want pennies discontinued. Among other things, we may receive free products, services, and/or monetary compensation in exchange for featured placement of sponsored products or services. 10 Things You Can Do With Pennies | Mental Floss 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. (Also Nickels. 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. A nonpartisan organization called Citizens for Retiring the Penny, founded by students at Wake Forest University in 2006, supports eliminating it from circulation. Rather than drop the practice completely, however, the stores decided to simply round all bills down to the nearest $0.05 instead. Letting us know his views on keeping or eliminating the penny will help us determine how important or unimportant the penny is for us to keep or not keep. 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. Thats what happened in Canada, where the Salvation Army and numerous other charities held drives to collect discontinued pennies in 2013. Danielle DeLee began writing in 2010. You don't have to be a mathematician or an economist to conclude that it costs nearly two pennies to make one penny. The pro-penny group backs up its claim by pointing to the work of economist Raymond Lombra. The penny helps keep high prices in check. A cent that, most of the time, goes unused. Since the goal of any business is to make money, most prices would be rounded up, not . Should We Get Rid of the Penny? - Scholastic You're saving it. [31][32][33], 2. Supporters of the penny dont buy this argument. Less than forty years later, the mint reduced the weight to 2.67 g and used a composition of 90% silver. In Canada, at least, eliminating the penny has not led to a widespread increase in prices. Now put it to work for your future. Read our guide on how to clean pennies. Politics latest updates: NHS 'on the brink' says nursing union; 10% 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. 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. This is the least substantive argument in favor of keeping the penny, and yet, ironically, its probably the most effective. Since the penny costs 0.26 more than face value to 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. With that in mind, halting production of the penny may be a sensible decision for society as a whole. Chicago, Illinois 60654 USA, Natalie Leppard We Won't Forget President Lincoln. However, new initiatives are being proposed to make the penny more efficient - read more to find out how! 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. Opinion | Abolish the Penny - The New York Times A dollar coin can last up to forty years. Anti-penny advocates point to the 2020 annual report from the U.S. Mint, which states that it costs 1.7 cents to produce a single penny. After all, we still need the coin for a number of reasons. There are precedents for getting rid of coins that are too small to use. Both sides in the penny debate make some good points, and the solution is far from being an easy decision. 9 Reasons Why America Should Get Rid of the Penny - The Balance Proponents of the penny argue that shopkeepers would tend to round up, increasing prices. 10 reasons why we should keep the penny. 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 . 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. 10 reasons why we should keep the penny. For example, a pizza shop that sells a slice of pizza for $1.98 might start charging $2.00 instead. Keeping the penny eliminating the penny reflect - Course Hero Pennies don't last forever, and the US Mint explains that the copper surface can corrode away after a few years. All rights reserved. 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 some respects, we can make the same argument for the paper dollar. These composition changes ranged from temporary wartime alterations during World War II, to more permanent switches like using zinc instead of copper for the penny. But the price of copper receded, and plans for the change were dropped. 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. 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. And since the Mint produces billions of pennies a year, the government loses millions of dollars annually in the process. the penny under one cent. The cost of pennies is a minor problem. Argumentative Essay: Keep The Penny | ipl.org - Internet Public Library Penny opponents point out several problems with this argument. (6) The penny has become useless as a means of exchange. The cost of producing them is higher than face value. The general rarity of the $2 bill is compounded by the fact that many people hoard them. Item 2 (1) The saying goes, "Find a penny, pick it up. (2) All day long Would love your thoughts, please comment. 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. ProCon.org is the institutional or organization author for all ProCon.org pages. [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. As a result, the Mint has to keep making more pennies. Top 3 Pros and Cons." [37], 7. The reason why is obvious. Are culture would be forgotten shops prices . 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. Apr 08, 2023; By ; In nmaa all district teams 2022; camscanner premium account id and password Companies would need to update their price catalogs. Simply mix one tablespoon of salt with two tablespoons of white vinegar, then submerge the penny in the liquid for a few minutes. 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. Pennies are so close to worthless that many people argue its time to do away with them altogether. They dropped the penny and rounding happens just the way you learned in like 2nd grade. -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. U.S. Securities and Exchange Commission. There's been a debate brewing over the value of the penny, and conversations have grown amid a national coin shortage. [34], 5. 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? Producing pennies also uses a great deal of energy. The bills, according to the Federal Reserve, cost only $0.155 to print, far less than their $5 face value. This not only weighs down our pockets, but it also holds up the line while we mess around counting out coins. memorial service for bro. Carlton Pinney | Join us as we - Facebook Although originally made of pure copper, pennies today are composed of 97.5% zinc and 2.5% copper. Learn how to keep it safe. Also the United States loses 1.8 cents for every penny being made. He has written for many top publications, such as The New Yorker, Huffington Post, and The Wall Street Journal. That adds up to a loss of over $61 million for that year alone. Why We Should Get Rid Of The Penny - The Odyssey Online At the time it was eliminated, the useless halfpenny could buy as much as 15 pennies can today. Illustration: The Spruce /Danie Drankwalter. 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. The elimination of the penny would cause prices to be rounded up to the nearest nickel, which would be a burden on consumers, businesses, and the economy. 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.. 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). NBC's Morgan Radford reports for Weeke. "Should the Penny Stay in Circulation? Although the cost for printing a dollar bill is about five cents, only lasts an average of eighteen months. According to the U.S. Environmental Protection Agency, zinc ores contain only 3% to 11% metallic zinc. Remember to focus on content rather than grammar or mechanics. As you can see, both sides have some good points. Post date: 20 yesterday. Abolish the Penny Essay - PHDessay.com While countries such as Australia . 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. [4] Several unsuccessful legislative efforts have sought to bring about the pennys extinction. Opinion | The penny should be eliminated | Opinion | breezejmu.org
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