10 reasons why we should keep the penny
10 reasons why we should keep the penny - theflowerfall.com 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. The existence of pennies helps raise a lot of money for charities. In 1857, the U.S. Mint stopped making the half-cent coin, partly because the cost of making it had exceeded its face value, and somewhat because it was considered to be too small a denomination and it was no longer needed. Jarden and the zinc industry are fighting to keep the penny. And its very easy for a child to say, Will you help me support this nonprofit, will you give me your pennies? [6] Elementary school students in Los Angeles, CA, gain significant leadership and civic engagement experience from USCs Penny Harvest program by choosing how to donate the money they raise. 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. 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. List two to three ways. 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. Vending Machines Don't Want Them. The mint produces billions of these coins every year. His mission is to use his platform as an author to bring awareness and perspective on important issues affecting everyday life. For these types of payments, rounding to the nearest nickel would cost consumers an extra 2021 dollars annually. At the time it was eliminated, the useless halfpenny could buy as much as 15 pennies can today. To anti-penny advocates, thats a lot of costs for a coin that cant even buy a piece of gum anymore. One 2012 survey found that more than two-thirds of the respondents wanted Uncle Sam to keep making them. However, this only works if the coins actually do circulate and pennies, as noted above, often dont. [3], For more on US currency, explore Currency and the US Presidents.. It would also cause prices to rise. Yes, abolishing the penny is worth considering. 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. 10 reasons why we should keep the penny . Removing the penny would save taxpayers money and reduce unnecessary waste. Would love your thoughts, please comment. 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. MAKE JEWELRY. The Penny Debate: to Keep Or not to Keep - GradesFixer Without pennies, the Mint would be forced to make more five-cent pieces. 2023 Money Crashers, LLC. As both stores and individuals stop keeping pennies on hand, banks wont need to supply as many. Some Hope Not," nytimes.com, July 29, 2020. [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. No. If we don't have the penny. In the rare case you have never heard of or used a penny, it is the one cent coin in U.S. The official name for the US penny is one-cent piece, according to the US Department of the Treasury, but early Americans were allegedly in the habit of using the British term penny. [4][35], 4. 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). Sign up for more easy craft ideas, fun hobbies, and DIY projects, Lincoln Wheat Penny Key Dates, Rarities and Varieties. Pro and Con: Pennies | Britannica 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. Their reasons differ. This makes sense. All information published on this website is provided in good faith and for general use only. 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. 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. There's a downside to life without pennies. There are multiple upsides as well as downsides to America discontinuing minting the penny. March 10, 2016 Should we keep the penny or not? 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. Top 3 Pros and Cons,", ProCon.org, "Should the Penny Stay in Circulation? After only two years, the Flying Eagle cent gave way to the now fondly remembered Indian Head cent. Despite President Abraham Lincoln's face adorning the single penny, most people don't use or even expect pennies as payment anymore. Should you need such advice, consult a licensed financial or tax advisor. Shops' reluctance to accept cash payments, coins included, has disempowered people experiencing homelessness, who often don . We can not guarantee its completeness or reliability so please use caution. To access extended pro and con arguments, sources, and discussion questions about whether the penny should stay in circulation, go to ProCon.org. Americans have a love-hate relationship with pennies. One of the overlooked reasons why we should keep the penny is that the abolition of the penny would force an increase in the production of the nickel, as more nickels would be necessary to make up for the pennies that are not in circulation. The penny is no longer a useful form of currency and its continued existence is costing the US government money. History has shown us that updating the monetary supply in countries where the currency is very stable has had little if any adverse effect on the economy, or people's acceptance of the coinage. Four decades ago, the Mint made more than 1.5 million prototype aluminum cents during a similar crisis, with every expectation they would soon see use in circulation. None of these changes caused any significant problems in commerce. The COVID-19 pandemic could accelerate this trend. THE PENNY DEBATE sample essay.docx - " THE PENNY DEBATE - Course Hero It cost 2.4 cents to make the penny. [1] Thats a bargain for how many times it gets used. These arguments arent based on logic which, ironically, makes them much harder to counter. Keeping the Penny. Penny opponents point out several problems with this argument. Those who think we should keep the U.S. penny cite the following arguments to support their position. It was first authorized in 1776 to help fund the Revolution. After all, we still need the coin for a number of reasons. All rights reserved. While countries such as Australia, Canada, and New Zealand have phased out their one-cent pieces, Harris Poll found that 55% of Americans are in favor of keeping the penny and 29% want to abolish it. 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. The elimination of a $58 million dollar annual cost on a federal government running trillion dollar annual deficits each and every year isnt going to move the needle one micrometer back towards fiscal sanity in this country. On its website, the group marshals an array of arguments that eliminating the penny would lead to disaster for consumers, charities, the government, and the economy as a whole. If we keep the penny we would get more taxes over time. [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. The penny is an important part of our history and culture. Managing Editor Opinion | The penny should be eliminated | Opinion | breezejmu.org [11] In 2009, the Leukemia and Lymphoma Society announced that school children had collected over 15 billion pennies in support of its charitable work thats $150 million dollars for blood cancer research and treatment. While every effort has been made to follow citation style rules, there may be some discrepancies. All these toxic metals can contaminate water, soil, and plants in the area surrounding the mine. In 2009, four different cents were issued with images representing key segments of Lincolns life. See Details. 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. 25, 2019, Jenny Gross, "Will the Penny Survive Coronavirus? In 2010, it cost 1.67 cents to produce each penny. In 1965 the U.S. Mint stopped making 90% silver dimes, quarters, and half-dollars and changed them over to base metalcladversions. 7 Reasons to Get Rid of the PennyIt's a Money Loser for the Government. The decision to discontinue it would incur political backlash. 10 reasons why we should keep the penny - elzanproperties.com 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. Removing the penny removes grades of information that could be available to investors, consumers and manufacturers. 1. [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. Thus, it couldnt affect government expenditures or trigger widespread inflation. Charities benefit from spare change because, since people do not care about it, they are more likely to give it away. "Open an IRA in 15 minutes." Along with the zinc, the ores usually contain other metals, including toxic metals like cadmium and lead. Why We Should Kill the American Penny | PBS NewsHour Unlike its hefty predecessor, it had much less value as metal than as money. Depository Trust and Clearing Corporation. According to the U.S. Environmental Protection Agency, zinc ores contain only 3% to 11% metallic zinc. The very fact that pennies have so little value makes them useful to charities because people are happy to give them away. However, it is removed from circulation when tendered at a Canadian banking facility. You don't want to lose it. If only cash transactions are affected, then electronic transactions will continue to deliver more sensitive data. Abolish the Penny Essay - PHDessay.com According to the 2020 Annual Report from the U.S. Mint, it now costs about $0.018 or 1.8 cents to make one cent. We're Moving Away from Currency. That would cost an estimated $10.9 million more annually than it would cost to keep making pennies. 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. [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. Proper citation depends on your preferred or required style manual. Should we keep the penny. Push for the position and policies you support by writing US national senators and representatives. Currently, the cost to make a penny is around 1.82 cents. Act, which would stop the minting of the penny for ten years to assess the repercussions. 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 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. If we keep the penny prices will go up to five cents. Unlock the Ultimate Benefits with the United 1K Guide! A dollar coin can last up to forty years. The people who make less than $35,000 dollars a year need pennies. In his spare time, Dominic enjoys running along the Hudson River and exploring the citys art galleries. According to William Safire, in 1950 a penny would buy what a dime would buy today. The price of zinc, which currently composes 97.5 percent of a penny, has tripled over the past 15 years. However, a newer study published in 2007 by economist Robert Whaples in the Eastern Economic Journal contradicts Lombra's findings. 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. The arguments for halting production of pennies basically boil down to the idea that theyre more trouble than theyre worth. Pennies today are worth almost nothing, but they still cost money to produce and consume vast quantities of natural resources. Eliminating the penny, they argue, would be disrespectful to his memory. Dominic is passionate about writing stories that have the power to make a difference in peoples lives. If more businesses follow Chipotles example and start rounding down their bills, their customers will find themselves with fewer pennies in their pockets. 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. The penny helps keep high prices in check. 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. Should We Get Rid Of The Penny? | TODAY - YouTube Argumentative Essay: Keep The Penny | ipl.org - Internet Public Library https://www.britannica.com/story/pro-and-con-penny. The penny-pinching . 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. 10 reasons why we should keep the penny - look.perfil.com 10 reasons why we should keep the penny - artyrox.com Anti-penny advocates are fond of pointing out that today, the penny costs taxpayers more to produce than its actually worth. 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. 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. If the penny is discontinued, then merchants must round all prices. If you pay with credit or debit card, it is $7.12. [4] Several unsuccessful legislative efforts have sought to bring about the pennys extinction. 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. Today, theres literally nothing you can buy with a single penny and you cant do much else with it either. Nickels also cost more to make than their face value about $0.07 apiece so the Mint loses even more money on each nickel it produces than it does on each penny. Every year charities like the Lymphoma Society and Ronald McDonald House raise funds through penny drives, encouraging people to donate their unwanted pennies. November 29, 2022; did jesus walk on water before or after his resurrection . 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). Eliminating pennies would save time at the point of purchase without hurting customers or businesses financially. Faced with a similar sea of red ink, Canada stopped making cents in May 2012. 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. The penny has increased to 7.6 million dollars a year to make a penny. 4. Many wont even bend to pick them up, as Andy Rooney noted on a 60 Minutes segment some years ago. The C.O.I.N.S. 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. As you can see, both sides have some good points. (5) The United States should follow the lead of other countries and discontinue the penny, because it is obsolete and costs more than it is worth. But since then, the cost of zinc has risen dramatically and thats a big reason the cost of making cents is now over the top. In 2020, the Mint shipped out more pennies than nickels, quarters, and dimes put together over 8 billion coins. [ 36 ] 6. 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. Even the US Mint admits that the cost of producing a penny in 2007 could be as high as 1.4 cents. There are reasons for the elimination of the penny, mostly having to do with the inconvenience of the small coin. Pennies are basically worth pennies today, and they consume vast quantities of natural resources to produce. However, while many people are calling for the pennys retirement, others are working just as hard to keep the coin in circulation. Why We Should Get Rid Of The Penny - The Odyssey Online For example, a pizza shop that sells a slice of pizza for $1.98 might start charging $2.00 instead. Get DIY project ideas and easy-to-follow crafts to help you spruce up your space. Any action you take based on the information found on cgaa.org is strictly at your discretion. Pennies don't last forever, and the US Mint explains that the copper surface can corrode away after a few years. And as it grows ever easier for charities to accept donations electronically, coin drives are likely to play a diminishing role in fundraising. Should We Get Rid of the Penny? - 8 Reasons to Keep It vs Eliminate It shutterstock.com Around 8% of coppers are thrown in the bin every year. References to products, offers, and rates from third party sites often change. First of all, if the U.S. Mint stops producing pennies, they wont simply lose their value overnight. PDF Yes No Should The Penny Be Retired - warrencountyschools.org Low rated: 2. Or should the U.S. keep it's smallest coin? Another piece of evidence against Lombras claims comes from Canada, which stopped minting its penny in 2013. It began as a pure copper coin, but when prices rose during World War I, the Mint added nickel to the penny to cut costs. The U.S. Mint reports that it costs nearly 1.6 cents to product one single cent (Grenoble, 2013). The discontinuation of the penny would require significant turnover. All of this numismatic change took place without any significant problems. Former Representative Jim Kolbe of Arizona sponsored two bills in Congress to eliminate the penny. 9 Reasons Why America Should Get Rid of the Penny - The Balance PDF The Value of a Penny This is the least substantive argument in favor of keeping the penny, and yet, ironically, its probably the most effective. When the Baby Boomers were young, a penny still had some value. The United States penny has had a fascinating journey since entering circulation. Her areas of writing expertise include economic theory and applications, Russian culture and scuba diving. She also maintains a personal blog. Rating: 4 (257 reviews) Highest rating: 4. It's a Money Loser for Retailers. Why or why not? Some stores are even refusing to accept cash altogether. Thats what happened in Canada, where the Salvation Army and numerous other charities held drives to collect discontinued pennies in 2013. 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. )," YouTube.com, Sep. 6, 2010, Greg Mankiw, "Get Rid of the Penny!," gregmankiw.blogspot.com, Apr. Nickels cost 7.7 cents to make, (2.7 cents over face value, as opposed to 0.26 cents over face value to make a penny,) so making each nickel costs 1.44 cents more than making each penny. Maybe this is another consideration that the U.S. government should look at. Often, when we pay with cash at a store, the total amount doesnt end in a multiple of $0.05. One-cent pieces account for nearly three-fourths of the coins now Millions of pennies are produced every day and sent out all over the country.Catherine Zalatoris Track And Field, What Is Gary Sinise Doing Now, Articles OTHER