Essay On Penny

903 Words2 Pages

The penny has been around for over 200 years and has had over 21 redesigns. The penny more than an object, it is a symbol of the American society, and it contains symbols on it that show foreign countries what makes America, America. Recently the penny has been under fire by the media due to its relevance in our society. Although the penny has been an important part of American society for many years, it hurts America more than it actually benefits it. This is due to the cost to produce it, and the impact it will have if it is removed from our society.
To start, the penny’s cost to be produced is more than what it is actually worth in America’s currency. This means that we are losing money rather than actually making profit. Maria Story wrote …show more content…

Mint more than 2.4 cents to produce one penny” (Story 5). This reveals to us that taxpayers have to pay more than double the value it has in America’s currency. If America produces more than 48 million pennies a year, the people of America would have to pay more money for a coin that is virtually useless in society. Majority of purchases that are done in America are done online or in cash, therefore American’s rarely even use coins, and when they acquire a penny it is from the cash that they get from the purchase. The penny is either left in the holder’s pocket to where it will never be seen again, or it will be stored in a drawer where it will also never be seen again. Moreover, in the text “Penny Wise, or 2.4 Cents Foolish?” written by Jeff Sommer, he debated on whether the penny should be used or not, he had this to say “... the taxpayers- lost $60.2 Million on the production and distribution of pennies in 2011 fiscal year, the mint’s budget shows, and the losses have been mounting: $27.4 million in 2010, and $19.8 million in …show more content…

That is an idiotic argument because people would not want to buy something that is more expensive when you can go across the street and buy it for a cheaper price. Jeff Sommer, writer of “Penny Wise, or 2.4 Cents Foolish?” conversed about this issue in his text. He argued “... 99-cent price of pizza might go down to 95 cents rather than $1 to avoid crossing that higher price threshold.” (Sommer 2). If you are in place like New York, there are food places and shops all around, this means that they will all be competing for more service. If someone wants to go buy food at a pizza place, they are going to go to the cheaper alternative because they won’t be spending as much money compared to the more expensive option. The penny should be removed because it will create competition between different companies, and the better companies will be remain in its location. Sommer also states in his article about pennies “A $2.01 cup of coffee should be rounded down to $2…” (Sommer 2). A cent lower on something may not seem like a lot, but eventually it will start to add up on items that will hold a larger value. The retailer will lower the price because they want people to go to their shop for the lower prices on items. This will feed into America’s capitalist society because the best stores will last, while the

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