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. Finally, small-change drives aren't always enough to raise funds - clean sorting and counting are required before any money can be collected, and many organizations are now accepting donations electronically over coin drives for this reason. 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. Although debate continues today about whether we should get rid of the penny entirely or not, its long history is something worth noting and its clear that it has undergone some monumental changes over time from its composition to its patterns on both sides - which makes it an interesting part of our nations history. Why we should keep the penny. Post date: 20 yesterday. 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. 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. They support keeping the penny because pennies represent the most expendable part of pocket change. Make sure you have some later too. In 1792, Congress created a national mint authorized to make gold, silver, and copper coins, including the one-cent piece known as the penny. Act is still in committee. To pay the exact amount, we have to either hand over some pennies or receive some in change. 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. Discover what happens, how to avoid it, and what you can do if it's too late. Unlike some other foreign governments, the penny remains legal tender in Canada. 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. In 1965 the U.S. Mint stopped making 90% silver dimes, quarters, and half-dollars and changed them over to base metalcladversions. In 2010, it cost 1.67 cents to produce each penny. In fact, it costs almost a dime to make a nickel today. -- who dumped their low-denomination coins 30 years ago, will be laughing at our senseless jingling. The cost of pennies is a minor problem. The pro-penny group backs up its claim by pointing to the work of economist Raymond Lombra. Pennies are so hard to spend that many people dont even bother they just store them all in jars, or even throw them away. Getting rid of the penny would save time since customers wouldn't have to search for their nearest nickel and wait in long lines while customers ahead of them try to count out exact change. Even during my childhood in the 1980s, there was a candy store not far from our house that sold penny candy in jars one penny for a mini Tootsie Roll, or two for a Mary Jane. However, in recent years, there has been much debate about whether or not we . You don't have to be a mathematician or an economist to conclude that it costs nearly two pennies to make one penny. so at 27 cents per ounce, I am going to have about $270 in value. )," YouTube.com, Sep. 6, 2010, Greg Mankiw, "Get Rid of the Penny!," gregmankiw.blogspot.com, Apr. 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. 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. That's why last December, Congress directed the United States Mint to nd ways to produce our coins more cost-effectively. Making pennies wastes natural resources and is toxic to people and the environment - Pennies are 3 percent copper, and 97 percent zinc and are primarily made from virgin ore. Making pennies from . We can not guarantee its completeness or reliability so please use caution. 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. However, it doesn't say what those reasons are. The ubiquitous one-cent coin has been a part of our everyday lives for over two centuries - and some argue that it's time to get rid of it. This not only weighs down our pockets, but it also holds up the line while we mess around counting out coins. Faced with a similar sea of red ink, Canada stopped making cents in May 2012. Although originally made of pure copper, pennies today are composed of 97.5% zinc and 2.5% copper. Common Cents, an organization devoted to keeping the penny, runs an annual Penny Harvest and supports the penny largely because of its importance to charities. However, the fact that this poll was conducted by a pro-penny group suggests that the questions might be somewhat biased toward the pro-penny side. 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. But others have a vested interest in keeping the penny alive. [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. If we keep the penny we would get more taxes over time. Should we keep the penny Rating: 4,5/10 932 reviews The United States penny, or one-cent coin, has been in circulation for over two centuries and is a longstanding symbol of American currency. This article was published on July 2, 2018, at Britannicas ProCon.org, a nonpartisan issue-information source. Large cents bearing portraits of Miss Liberty were minted for 64 years a long lifespan during the nations first century. According to Trading Economics, the inflation rate in Canada since the changeover has wavered between a high of around 3% and a low of negative 0.5%. 3. News sources such as NPR began speculating whether the penny would finally be retired or if crypto possibilities might replace it. Both sides in the penny debate make some good points, and the solution is far from being an easy decision. For all its current problems, the penny has a long and proud tradition dating back to 1793, when one-cent pieces were the very first coins produced by the fledgling U.S. Mint. It's a Money Loser for Retailers. Life Without Pennies. It's a Money Loser for You. At this rate, the United States loses millions of dollars producing pennies and nickels. Thus, it couldnt affect government expenditures or trigger widespread inflation. 25, 2019, Jenny Gross, "Will the Penny Survive Coronavirus? I think it human nature to maintain status quo until it becomes a crisis. The change from brass, the previous composition, took place in 1982 as a cost-cutting measure because zinc was much cheaper than copper. 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. Economist Robert Shapiro estimated in a 2017 paper that it costs 55 times more to make pennies than the value of each coin itself. In 1856, the weight was further reduced to 2.49 g. In 1873, the weight was increased to 2.50 g where it remained until silver was eliminated from all coins in 1965. Consider the con arguments from NPRs Planet Money reporter Greg Rosalsky. The C.O.I.N.S. Top 3 Pros and Cons,", ProCon.org, "Should the Penny Stay in Circulation? Its the only coin we have that has Lincolns face on it! 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. The primary reason is the soaring cost of metals. The penny-pinching . U.S. Securities and Exchange Commission. Some are opposed to change, and others are attached to the penny for sentimental reasons. The United States penny has had a fascinating journey since entering circulation. 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. 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. So instead of penny drives, charities could start holding nickel drives, putting out bottles or wishing fountains to collect the new useless coins. We Won't Forget President Lincoln. People think we should not make pennies because they cost 2 cents to make. We should be keeping the penny! The penny was first minted in 1857. [10][11] So what if it costs 1.8 cents to make? One-cent pieces account for nearly three-fourths of the coins now being made by the federal government and critics maintain that the Mints facilities and workforce could be used to better advantage, and much more profitably, by devoting them instead to higher-value coins that yield substantial profits. View full document. While every effort has been made to follow citation style rules, there may be some discrepancies. If the penny is discontinued, then merchants must round all prices. Not only do they cost money to make, but they don't buy much anymore - you can't even buy gum with them! The penny has practically no value and should be taken out of circulation just as other coins have been in US history. The content on Money Crashers is for informational and educational purposes only and should not be construed as professional financial advice. To the average American, this is a perfect match: the common mans President on the common mans coin. Additionally, cryptocurrency transactions are incredibly fast and secure, making them ideal for day-to-day payments. In his spare time, Dominic enjoys running along the Hudson River and exploring the citys art galleries. [17], You cant buy anything for a penny; vending machines and parking meters wont accept them. 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.

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