The Penny: A One-Cent Piece of History
In 2014, the US Government spent over $130 million in order to make and distribute over eight billion pennies (“Should the US” 22). This, to former senator Jim Kolbe, is “government waste at its worst” (qtd. in “Pinch the Penny” 3). For the past thirty years, people have argued over whether the penny was worth keeping in circulation. Many people say that it costs the United States government too much to produce, while others say that it keeps the economy and keeps prices in check. Although the penny is an important piece of American history, eliminating the penny will save time, money, and the environment.
Even though there are over one trillion pennies in circulation today, their face value along with
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the rapid inflation over the past century has rendered the penny essentially useless (Fund 39:5 46-47). In the past two years, many countries, such as Australia, Brazil, and Canada, have gotten rid of their one-cent coins. Canada, which has a monetary system very similar to the United States, eliminated the penny in 2012. A member of the Canadian parliament stated, “The penny slows down the line at grocery stores and ends up under our couches.” (“Should the US” 22). In the early 1900s, pennies were a large part of the economy. A few pennies could buy a wide variety of items, but today, at least100 pennies would be needed to buy a simple candy bar, which is a great deal of spare change to haul around. Along with weight, it would take a large amount of time to count out 100 pennies, and the cashier and the other people in line would definitely not be too happy. Not only is the penny worthless, but also over half of the pennies manufactured are never used (Sommer 6). A recent poll conducted by Stanford University shows that over 58% of people stash their pennies instead of spending them (“Pinch the Penny” 3). Even thought the penny accounts for over half of the US Mints production, about 52% of pennies never make it to the grocery store to be spent (“Should the US” 22). Harvard University economist wrote in his blog: “The penny is past its prime. In addition to cost, supporters of ditching pennies that many Americans just don’t value them. Instead of being used to buy goods, the coins often end up lying around- on sidewalks or between couch cushions. In the 1920’s, a few pennies could buy you a handful of candy, a bottle of soda, or a newspaper. These days, many people don’t even bother to pick up pennies off of the street.” (“Should the US” 22) In order to save time in lines at grocery stores and time at the national mint, the penny should be discontinued. In addition to uselessness, the penny costs the United States government enormous amounts of money annually. Rising costs of copper and zinc has made the cost of producing the penny about 1.6 cents per coin, 0.6 cents over its face value (Sommer 6). At current prices, it will cost the government over $44 million to manufacture the penny this year (Fund 39:5 46-47). Considering that over half of these coins will never be spent, it seems to be a pointless endeavor. One of the most prominent years for the production of the penny was 2014. As mentioned before, in 2014, $130 million was spent and eight billion pennies were manufactured. After calculation, it was found that over $40 million was lost (Sommer 6). In addition to the fact that over half of pennies produced are never used, over two billion pennies are manufactured annually, which is much more than necessary. Manufacturing the penny is at a loss to the United States government, yet it still produces unnecessary amounts of pennies. “If the government continues to produce this many pennies each year, it will have lost over $10 billion in revenue by 2020. If the government will not get rid of the penny, it might as well lower manufacturing rates” (Sommer 6). The penny accounts for over half of the United States mint’s coin production, and with the fact that the government if over $18 trillion in debt, this is unacceptable (Fund 39:5 46-47). Not only does the penny harm the economy, but it also harms the environment. Each penny, being approximately 97.5% zinc and 2.5% copper, weighs about 2.5 to 3.11 grams (Fund 39:5 46-47). In 2014, the United States mints produced 8 billion pennies, which is equal to 21,888 tons of zinc and 562 tons of copper (Cavanaugh 70). Western copper mines use about 35.7 gigajoules of energy per ton of copper mined, and zinc mines use about 6.8 gigajoules per ton (Cavanaugh 70). One gigajoule of energy can power a light bulb for around 277 hours. Electricity is a rapidly increasing world need, and these monstrous amounts of wasted energy could be used to provide power to hundreds of thousands of homes across the world. The United States mints also consume large amounts of energy. “Although the Denver Mint has changed to 100% wind power, the other three US mints still depend on non-renewable energy sources” (Fund 39:5 46-47). Along with the enormous waste of energy, the manufacturing the penny also releases large amounts of pollution into the environment. Much of the zinc used in pennies comes from Red Dog Mine, a large zinc mine in northwest Alaska. Red Dog Mine has a long history of illegal mining and waste pollution, and is one of the United States’ top polluters. During the process of separating waste rock from zinc ore, considerable amounts of pollution are released into the atmosphere. Approximately 0.5 tons of carbon dioxide are released per ton of zinc mined (Cavanaugh 70). This is a great deal of pollution, considering the extensive amount of zinc mined annually, but is small when compared to the amount of pollution released from the mining of copper. Copper mines release around 2.6 tons of carbon dioxide per ton of copper mined, over five times more than zinc mining (Cavanaugh 70). Also, the zinc in pennies is toxic to small animals such as birds or small dogs. Overall, the harm caused by the manufacturing the penny alone should suffice as a reason to discontinue the penny. Many Americans claim that eliminating the penny will have negative effects on the economy. Economists frequently state that low-denomination coins keep prices lower. If all prices were rounded to the nearest nickel, they could either cut into company’s profits if the price was rounded down, or it could cost more to the customer if the price was rounded up. Also, a poll conducted by the ACC (Americans for Common Cents), a pro-penny organization founded by the zinc industry, showed that 68% of United States citizens want to keep the penny (“Should the US” 22). Most people want to keep the penny for sentimental reasons, as the penny has been in circulation since 1864. They believe that keeping the coin honors President Lincoln, whose face has graced the coin since 1909. “The image of President Lincoln on the cent has not changed for over 100 years, longer than any other coin” (Fragale 20). The public believes that the penny is an important part of American history. “The penny is part of American history. It would be like getting rid of the flag (Fragale 20). The penny is popular with the public for sentimental reasons, but most people do not look at the logical reasons for keeping the penny. One of the logical reasons for keeping the penny is its importance to charity organizations. Many charities depend on pennies, such as Salvation Army and Ronald McDonald House, which raise millions of dollars through pennies. Whenever someone receives a few pennies as change, he or she is much more likely to put them into a charity container rather than put them in his or her wallet to be stored indefinitely. The leukemia and Lymphoma Society has raised over $15 million in pennies in their Pennies for Patients Program (Fragale 20). The penny has an important role in the economy for charitable purposes. Also, if the penny were to be eliminated, the mints would have to produce more nickels, which cost almost eight cents to manufacture. Nickels, which cost three cents over their face value to produce, are much more expensive to manufacture than pennies. The sentimental reasons for keeping the penny are not valid, as they have no logic or reason behind them. The logical reasons, such as the importance to charity and the adverse effects of producing more nickels, however, are valid, but the benefits of eliminating the penny simply outweigh these reasons. Overall, the penny should be discontinued.
This will save considerable amounts of government money: almost $40 million annually (Cavanaugh 70). Eliminating the penny will also save time in lines at grocery stores and will save the environment from pollution. In order to avoid these adverse effects, penny production must be either eliminated or lowered. Although many people have thought of a penny-recycling program to try to avoid these adverse effects, no ideas have been implemented. “Despite the fact that the US has recycled 21.8 million tons of metal in 2013, a recent year for which details are available, not a single penny is recycled, at least by the mint” (Cavanaugh 70). The fact is that, as forms of electronic payment such as credit cards or PayPal are becoming more popular, all forms of physical currency, not just the penny, are becoming obsolete. Some might even argue that the nickel or dime isn’t worth keeping in circulation, not to mention the penny. By eliminating the penny, the government will spare not only United States citizens, but also itself the trouble of dealing with the insignificant …show more content…
coin. Works Cited Cavanaugh, Tim.
“Penny Reign: America’s Least Valuable Coin Endures.” Reason, Jan. 2011, p. 70+, Opposing Viewpoints in Context.
Fragale, James A. “In Praise of a Humble Coin.” Newsweek, 7 Apr. 2008, p. 20, Opposing Viewpoints in Context.
Fund, John H. “Penny Wise.” [“Proposal to Abolish the Penny”]. American Spectator, vol. 39, no. 5, June 2006, pp. 46-47, EBSCOhost.
“Pinch the Penny? Debating the Value of the Penny.” Current Events, a Weekly Reader publication, 29 Sept. 2006, p. 3, Opposing Viewpoints in Context.
“Should the U.S. Get Rid of the Penny?” Junior Scholastic/Current Events, 8 Feb. 2016, p. 22+, Opposing Viewpoints in Context.
Sommer, Jeff. “Penny Wise, or 2.4 Cents Foolish?” New York Times, 8 Apr. 2012, p. 6(L), Opposing Viewpoints in
Context.
Throughout the past decade, costs of everything have skyrocketed. According to Source C, America used to have “five and dime stores;” now its a dollar store. In addition, no one can buy anything with just a penny anymore. The source also made a fair observation that these worthless zinc disks are, “behind chair cushions or at the back of sock drawers next to your old tin-foil ball. Quarters and dimes circulated; pennies disappear because they are literally more trouble than they are worth.” According to a New York Times article, “it takes nearly a dime today to buy what a penny bought back in 1950.” The penny is still stuck in the 1950s while America just keeps moving on. As stated by Mark Lewis in his concept of establishing a bill, “the bill would not ban pennies, but merely discourage their use by establishing a system under which cash transactions would be rounded up or down.” (Source A) This motive will help keep the America exceed and
In America’s modern day economy, the penny is very useless and irrelevant in our society today. As source C states, “The time has come to abolish the outdated, almost worthless, bothersome, and wasteful penny.” There is not one item that can be purchased with a penny anymore (Source C). As source C states, “it takes nearly a dime to buy what a penny bought back in 1950.” Stores such as the Dollar Store prove how the cheapest items you can purchase are with only a dollar, not a cent. Pennies are shoved out of the economic picture by credit cards and because of the modern-day technology, there are even self-service machines that help convert coins into paper money (Source B). Furthermore, pennies are easily tossed into piggy banks or appear behind chair cushions. It is not used the same way as it was before.
Do we really need pennies? The story of the penny starts in 1792; it came with several different coins including the dime, nickel, quarter, and half penny. The pennies were first made out of 100% copper, but the price of the copper went up, because of inflation, the power of the penny went down. The cause of the mint is to reduce the amount of copper in pennies first from 100% to 95% but then to 5% copper and 95% zinc. Despite the debate in 2006, the value of metal on older pennies rose over one year.
According to source #4, it states, “The one cent has influenced our language, giving us a number of idioms, such as ‘a penny for your thoughts’ (a way to ask what someone is thinking) and ‘not one red cent’ (meaning no money at all).” This is significant because it shows that the penny has affected the English language, giving the language more idioms to use. It is often said that pennies should not be manufactured anymore due to their excessive cost of manufacturing and distribution. Yes, numerous people do acknowledge that fact, but the government can also propose that pennies are to use inexpensive metal, like steel, which makes the entire coin industry save money and has the cost of coins to be cheaper to make.
Ehrenreich, Barbara (2001). Nickel and Dimed On (Not) Getting By in America. Published- New York, New York.
The penny has been in America for centuries, it's a sentimental object for Americans everywhere. However many have debated on whether or not it should be eliminated or continue being made. The penny should be preserved because it is apart of American culture, given to charity, and keeps items cheap.
A buyer brings along with him snacks that he would like to purchase in a dollar store: chocolate chip cookies, a Pepsi, gummy bears, and a bag of chips. He waits in line, eager to consume this huge delight. It is his turn, and he hurriedly placed his treats on the counter, waiting anxiously to pay immediately. The cashier replies to him, “The price will be $5.99, sir.” The buyer takes out five one-dollar bills and four quarters. Not an instance did he ever use a penny in this case, which he thought was useless and meaningless. As you can see, the penny has become quite worthless and diminished in purpose. Many citizens would prefer to round up and pay rather than spend time and look in their
Is the penny really worth it? For over two hundred years, the penny has been a part of the United States with many different alterations in its shapes and sizes, and has been of historical significance to the United States. With the 16th President, Abraham Lincoln, on the top of the coin (as of now), it maintains its significance for quite awhile. Although some will argue that the production of pennies should be continued because, “a penny saved is a penny earned,” it really does no good at all. To make money costs money, and the penny is made for more than it costs itself, and the it’d be a reasonable way to round up prices in businesses.
Money is the backbone of America. Without it anarchy would break out and bargaining would fail as people would claim the trade wasn’t fair. Thievery would explode across the globe and some lazy people would have no motivation to work. While most people believe that money is important, the question is whether all money is important. For centuries, the penny has shared a role in American currency and has served a great purpose. In the past, pennies could buy candies, slices of bread, and many other things all on their own. But as time changed, so has the value of the penny. As costs went up, the value of the penny went down. And with its lesser value, some people wonder if it’s even worth it to keep the penny around.
Everyone knows the penny, the one-cent coin that has influenced American culture throughout the ages, what you may not know is that America’s smallest coin is under attack. As a result of the costly production of pennies, people have been debating over whether the penny should continue to be printed and used. Although some think kicking the penny to the curb is the way to go, the penny should not be done away with because of the cost of inflation, the cost of other coins, and the cost of losing a very valuable asset in our money system.
Specifically it is how we use the coined phrase such as: “a penny for your thought” and “not one red cent”(source #4). The argument continues that pennies are still around today because they have been around for over 200 years and tradition is important . Even though they are over 200 years old they are no longer useful. In fact, they are rarely used for trading, they tend to be used for collecting. It is common for people to store pennies in a jar. Once the jar is full they deposit it at the bank (source #1). Another argument against eliminating the pennies is a fear businesses might round up instead of rounding down when they adjust prices to remove the penny. This could cost Americans additional money each year (source #1). However, as much as the rounding could potentially cost, the penny is already costing Americans over $60.2 million a
Countries like New Zealand, Brazil, and Canada have all concluded that pennies are no longer worth making because of all the negatives about them. In the article, “The Penny Debate- Should We Keep the Penny or Get Rid of It”, the author states that getting rid of small coins doesn’t hardly have an effect on anything because most people don’t use them anyway. If all the other countries have abolished their small coins with no problem America should be able to get rid of the penny with no
In America pennies cost more than double to make than what they are actually worth. The United States mint says that every zinc and copper coin costs 2.41 cents to produce and distribute. The United States mint verifies the fact that it costs 2.41 cents to make a coin that is only worth 1 American cent, so this completely useless coin only has the mint losing money not gaining. Tax payers in America have lost a total 60.2 million dollars and production and distribution of the pennie in the 2011 fiscal year. This explains how the pennie has been causing people to lose many just by continuing to make more
Ehrenreich, Barbara. Nickel and Dimed: On (Not) Getting by in America. New York, NY: Metropolitan Books, 2001.