He has written for many top publications, such as The New Yorker, Huffington Post, and The Wall Street Journal. View full document. That means that annually, the United States loses 60 million dollars in pennies every year! No, dropping the Penny won't cost the government more. 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. To save time at the register, some businesses have experimented with rounding all transactions to the nearest nickel. In response, some penny charities started holding nickel drives instead of penny ones, putting their faith in wishing fountains that accept useless coins. Of course, spending $0.018 to make a coin thats worth only $0.01 isnt necessarily a bad idea because coins are reusable. If Cash is No Longer King, What Does that Make Stupid Pennies? Pennies are no longer made from pure copper . TD Ameritrade. [9]. 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. Supporters of the penny point to all-cash transactions as a reason why it should remain in circulation. (4) Considering that the penny has virtually no purchasing power, it does nothing except add unnecessary weight to our pockets and purses. 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!!!! 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. However, while many people are calling for the pennys retirement, others are working just as hard to keep the coin in circulation. According to the U.S. Environmental Protection Agency, zinc ores contain only 3% to 11% metallic zinc. Using your figures, that would amount to about 1000 ounces of copper. In 2013, Aaron wrote an anti-penny screed pointing out that it costs more to make a penny than its face value - 1.8 cents each - and therefore it is not cost-effective. Should we keep the penny. The Daily Iowan. 2022-11-18 Also the penny is a big part . Treasury officials reasoned correctly, it turned out that by then, Americans had developed enough confidence in their government to accept base-metal coins, quite literally, at face value despite their reduced intrinsic value. [4] Several unsuccessful legislative efforts have sought to bring about the pennys extinction. The penny is an important part of our history and culture. First, consumers benefit with a low denomination coin. Item 2 (1) The saying goes, "Find a penny, pick it up. (2) All day long "FAQs: How Issuers Work with DTC." A low-denomination coin helps keep prices in check. 3. But the price of copper receded, and plans for the change were dropped. There's been a debate brewing over the value of the penny, and conversations have grown amid a national coin shortage. 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. Should We Get Rid of the Penny? - Scholastic 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. 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. 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. Amy Livingston is a freelance writer who can actually answer yes to the question, "And from that you make a living?" Apr 08, 2023; By ; In nmaa all district teams 2022; camscanner premium account id and password 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. Should you need such advice, consult a licensed financial or tax advisor. This means that taxpayers are losing money every time the mint produces a penny. Thus, it couldnt affect government expenditures or trigger widespread inflation. Learn how to protect yourself when the bank takes your car. Consider the con arguments from NPRs Planet Money reporter Greg Rosalsky. PDF Yes No Should The Penny Be Retired - warrencountyschools.org According to an old superstition, its good luck to find a penny on the sidewalk. [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. The penny has been around for centuries, but it may be time to say farewell. In Canada, at least, eliminating the penny has not led to a widespread increase in prices. There are precedents for getting rid of coins that are too small to use. OTC Markets. In 2020, the Mint shipped out more pennies than nickels, quarters, and dimes put together over 8 billion coins. [1] Thats a bargain for how many times it gets used. The alternative to the penny . (Source 1) That is 60 million dollars we didn't need to lose, and 60 . For instance, penny supporters claim that eliminating the coin could harm the economy or hamper charities in their fundraising efforts. (6) The penny has become useless as a means of exchange. Millions of consumers also oppose the cents elimination on economic grounds. "Microcap Stock: A Guide for Investors." In some respects, we can make the same argument for the paper dollar. This question has been debated for years, with people arguing for and against its elimination. Currently, the cost to make a penny is around 1.82 cents. How would removing pennies impact people who primarily rely on cash transactions? Yes, abolishing the penny is worth considering. 325 N. LaSalle Street, Suite 200 Arguments for and Against Keeping the Penny - The Spruce Crafts Some supporters of the penny point out that its the only coin bearing the image of Abraham Lincoln, probably our nations most revered president. Remember to focus on content rather than grammar or mechanics. You can also make some hand-stamped bling like this . This not only weighs down our pockets, but it also holds up the line while we mess around counting out coins. "Open an IRA in 15 minutes." 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? It's clear that the modern penny is no longer necessary in our financial system. 10 reasons why we should keep the penny. Some stores are even refusing to accept cash altogether. News sources such as NPR began speculating whether the penny would finally be retired or if crypto possibilities might replace it. Please refer to the appropriate style manual or other sources if you have any questions. 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. You can easily get rust off a penny using vinegar and salt. PDF 5th Grade Opinion Writing Prompt - uen.org Penny's sentimental value proves priceless - Coppell Student Media )," YouTube.com, Sep. 6, 2010, Greg Mankiw, "Get Rid of the Penny!," gregmankiw.blogspot.com, Apr. Should We Get Rid of the Penny? - Scholastic The penny is no longer a useful form of currency and its continued existence is costing the US government money. 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. The total amount doesn't end when coins and citizens are debating the penny and whether or not it should be kept. In 2017, Senators John McCain and Mike Enzi introduced S.759 Currency Optimization, Innovation and National Savings (or C.O.I.N.S.) The penny is an interesting coin to discuss. There are multiple upsides as well as downsides to America discontinuing minting the penny. 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. As a result, the Mint has to keep making more pennies. 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. However, it doesnt say what those reasons are. 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. Most Americans want to keep the penny. 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. If we were to get rid of the penny, cash transactions would be rounded to the nearest nickel. The U.S. One Cent coin, or penny, has almost no purchasing power today. Why or why not? The cost of producing them is higher than face value. Jarden and the zinc industry are fighting to keep the penny. But, by the 1850s, the government faced much the same dilemma as today: The price of copper had risen, making cents too costly to produce. The production and use of the penny is no longer cost-effective, so it may make sense to eliminate it as a way to save money and resources. And in 2010, the Mint introduced a permanent new reverse depicting a Civil War-era Union shield. Since the penny costs 0.26 more than face value to memorial service for bro. Carlton Pinney | Join us as we - Facebook There have been several other minor changes in the coin metal composition. Why the UK should get rid of 1p and 2p coins - The Conversation Whats less clear is why Americans are so committed to a coin with so little monetary value. Among other things, we may receive free products, services, and/or monetary compensation in exchange for featured placement of sponsored products or services. A nonpartisan organization called Citizens for Retiring the Penny, founded by students at Wake Forest University in 2006, supports eliminating it from circulation. It takes a lot of time for volunteers to pick up, clean, sort, and count all those coins, and the more pennies there are in the mix, the less value the charity gets for each coin it handles. Most recently, in 2017, SenatorsJohn McCain(R-AZ) andMike Enzi(R-WY) sponsored ultimately failed legislation that would have suspended minting of the penny. Learn all you need to know about United Airlines seat selection - tips and tricks to get the best deal and a comfortable flight every time. Cash transactions there are now rounded up or down to the nearest $0.05. " 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. The debate over whether or not to get rid of the penny has been going on for years. The rust should come right off! They argue that eliminating it could hamper charities and fundraising efforts, as people feel more generous when they have coins to give away.
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