No Need for Pennies in Our Economy

720 Words2 Pages

Every day we buy things, and to purchase these items, most of us use credit cards or bills. Do we use pennies for virtually any transactions? The answer is no, we don’t. Consequently, the penny is far and away the least useful monetary value we have. Pennies are inefficient and should be cut out of the currency. The rationale behind this conclusion is simple: the price tag of minting a penny is more than one cent. Unfortunately for the penny, two other reasons prove that we require it no longer. The first reason is that not only will the removal of pennies make us more effective, it will drop prices similar to what happened in Australia and New Zealand when they abolished their “pennies”. The second is that we know that we do not need it to conduct our own domestic business. The military has intelligently decided to abolish the penny due to its value to weight ratio and general inefficiency. This decision has only lead to more productivity within the military. All of these factors prove to us that pennies are not as important to us as they may seem.

Indeed, the loss the U.S. Treasury faces is enough to justify the decision to cancel the minting of the penny. According to David R. Carroll in the Prairie News Register, “A penny currently costs the United States government 2.4 cents to mint” (Para. 1). That is a loss of 1.4 cents per penny, or more than double the value of the penny! Although an extra 1.4 cents may not seem like much, the total loss is approximately $100 million dollars annually. Since the money loss is so great, the eradication of the penny is urgently needed.

Moreover, we would not be the first to do so. In “Penny Anti” on National Review Online, author John Fund relates his own experiences in New Zealand, “Pri...

... middle of paper ...

...ebate about the penny has a clear solution. This solution would be to remove the penny from the list of currently minted currencies. This is due to the fact that the penny is costing the government and us millions of dollars a year, and since other countries have successfully stopped production of their lowest valued coins, there is no argument for keeping the pennies. We even know that the system works with our own currency due to the favorable outcome that the military had when they outlawed pennies overseas. As Mr. John Fund says, “... A nickel saved is also a nickel earned” (Para. 13). For the various above reasons, it is shown to be preferable to the economy and people as a whole to abolish the penny.

Works Cited

http://www.nationalreview.com/articles/294956/penny-anti-john-fund
This letter to the editor is from the Prairie News Register, December 26, 2012.

Open Document