The production of a penny costs about two cents each and the value of the penny is gradually decreasing throughout the years, however, penny production should not stop in the United States. Without the penny, all prices would be rounded up to nickel prices. Prices tend to be rounded up considering most prices end in a nine. Therefore, the tax buildup that Americans would pay throughout the next few decades would increase dramatically. The deletion of the penny from our current society will also force Americans to rely more heavily on nickels, which will end up taxing the government more money in the end. Though some believe that the penny should no longer be manufactured, there are a plethora of reasons why the penny is an essential part of the United States’ currency system.
For example, penny production should continue in the United States because of the rounding tax that citizens would need to pay in their everyday lives. Without the penny, prices of everyday needs would be rounded up and Americans would have to pay with nickels. Over time, the amount of money that citizens would pay just off of the rounding tax “could total as much as $1.5
…show more content…
billion over a five-year period” (Sanburn, 1). This dramatic change in tax payments could be avoided if penny manufacturing continued in the future. Instead of rounding up or down to make the price of the purchase either end in a zero or a five, exact numbered payments would be given. The penny allows for easier and more convenient ways to purchase items in the United States. Though many believe penny manufacturing is one of the most important factors to American currency in this generation, there are also many who do not support it.
For example, the amount of money it costs to produce a penny is higher than the value of the coin itself. It costs two cents to manufacture the one cent coin and this has been costing the American government for decades. In 1982, zinc replaced copper as the main metal in pennies due to a rising price for copper. However, “zinc prices have risen over the years, all but negating the earlier cost savings” (Sanburn, 1), which leaves the government to make the choice to maintain penny production or eliminate it all together. This situation is one that has caused heated debates in the past and will likely continue in the next few years until a final decision is
made. Without the penny as part of America’s currency, we would become more reliant on the nickel, which creates many other issues. Charities such as penny drives would not be able to raise as much money and the government would pay heavier costs in paying for the mass production of nickels to replace the pennies. The article “Waiting for Change” by Josh Sanburn states that each nickel costs ten cents for the United States to produce, which would end up taxing more heavily on our country because of the absence of pennies in our currency. Due to the aforementioned, penny production should continue to help the United States economy. The deletion of the one cent coin from American currency has been a debate throughout the last few decades. Many believe that stopping penny production would save the American economy from having to pay extra money to produce pennies. However, penny production should continue due to the dramatic rounding tax citizens would need to pay in order to allow their bill to be paid with nickels. Also, the United States would have to pay more money to produce more nickels, ultimately hurting the economy. Due to these arguments and the information given to us about the prices paid for coin production, penny production should not be stopped now or for future generations to come.
Between 2001 and 2006, there has been an increase of .6 cents for the reproduction of the penny. This increase displays economic problems that may lead to fatal ones. The penny is composed of 2% copper and 98% zinc. These elements are exponentially in demand causing the price of these materials to skyrocket. Many Americans think the penny is putting our country in jeopardy with financial losses. This meaningless coin is losing money for the mint, and should be abolished.
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 2001, United Sates Representative Jim Kolbe proposed a legislation to Congress to dispose the penny coin from the currency of America because of its small impact. Although his legislation failed, most people currently argue about the penny’s existence today. Even though the penny stood as a mark of history, it is useless and should be eliminated from America’s currency.
They must be eliminated, but you might think. Wont prices go up and charities lose money? No. new zealand , finland, and the netherlands stopped using the one cent or the one cent euro and noticed no change in cost instead they round to the nearest five cent. Anyways the US has already gone through this process without trouble like the half cent it was eliminated in 1857 because it was too little worth. Another thing is that everyone loves lincoln so they might think that his monument might be taken away but taking away the penny won't take away his memory we will still have him on our five dollar bill which won't go away. Yes you might think it is unpatriotic or disrespectful to take away lincoln but the us military is not using pennies because they have already realized that pennies are useless and not needed so they round to the nearest five cent. So basically pennies just aren't worth making, they waste people's time and they don't even work as money like they are supposed to, and because of inflammation lose more value every year making them making everything
The debate of eliminating pennies or maintaining pennies is a current focus in the United States. Many people think that eliminating the penny would positively influence the United States because the government would not have to devote millions of dollars for pennies. While many other people think that eliminating the pennies would negatively influence the United States because of the rounding tax that would be introduced after the pennies are eliminated. I think that we should continue to keep on manufacturing the pennies because the penny shows how it impacted the English language, it can also help causes that can save lives, and pennies can keep the government from creating the rounding tax which can cost consumers millions of additional dollars.
Have a good look at the penny, what do you see? You probably see nothing but a copper coated circular poor valued cent. Little does everyone know pennies have been around longer than before their grandparents, even their great-grandparents! Matter of fact, it was around so long ago that Abraham Lincoln’s face was not the first design on the penny. I ask that you take the time to consider the American penny’s worth. Without the people’s belief in its value, the penny will be abolished. I see people every day throwing away a penny rather than to put it in their pocket and save it for future uses. Yes a penny is "outdated, almost worthless, bothersome and wasteful" (Safire) piece of junk, but it's has an economic, cultural, and historical significance to the United States of America. The problem is that nobody pays attention to that, and that gives pennies the image of no value. Three good solutions to show the pennies worth include: tolls and vending machines accepting the coin, more charities to keep their penny drives, and historical evidence of what the penny mean to America so that it can be passed on to the future generations.
In fact there are many people that oppose abolishing the penny. In source E it states “that 62 percent of people oppose abolishing the penny that has a income less then $25,000 a year.” If the penny was to be abolish then the nickel would be the lowest coin in amount of money. If the nickel was the lowest amount of money there was then that means the purchase prices of items sold would increase. The prices would increase on items sold because the penny would not be in circulation to allow the customer to pay with the correct amount of change. Instead of being able to pay $3.47 for a kids meal at MacDonalds the customer would have to pay $3.50 for the kids meal. With the increasing prices of merchandise sold in stores there could be a budget upset for many families that have to follow a tight budget. Many families have to follow a tight budget to be able to provide for there families. With a tight budget there is no room for the prices of merchandise to increase due to losing the penny. Every penny counts when it comes to having a tight budget and providing for your
We should keep the penny because it has history, in fact it was “the first currency authorized by the United States” (Lewis). The penny no longer has the value that it used to have, but it is still necessary to make purchases as accurate as possible. The penny may seem like a waste of time to many Americans because it takes so long for cashiers to make change, forcing people to wait in line, but it is actually worth the time spent. The penny helps with keeping prices a cent lower, and therefore stimulating the economy. The penny is important to many people who need the money and for whom pennies still have value.
"As of 2014, the cost of making a penny was estimated at 1.7¢. So yeah, it almost costs two pennies just to make one penny- which makes no sense (pun intended)". Over time, many people have called for the U.S. to stop making pennies. Three reasons why are, we have a lot of coins and bills, not many people carry around cash, and making pennies can waste time, money, and minerals. That is why I believe the U.S. should stop making the penny.
The penny is so close to worthless that there is a major debate on whether the penny should be kept in circulation. Keeping the penny in circulation would be mostly for those traditionalists who see this coin as history and luck. Many are working very hard to keep that piece of history from meeting its retirement. ALTHOUGH THE PENNY HAS BEEN AROUND THROUGH AN ABUNDANCE OF GENERATIONS; DEPLETING THE NATION OF THIS COIN WOULD BRING LESS HASSLE AND MORE BENEFIT.
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
In 2016 each penny cost 1.7 cents to produce so to produce one dollar it costs a dollar seventy. Minting these lower denomination coins cost the government more than what they are actually worth. The U.S Mints have tried to use cheaper metals to be more cost effective at making the coinage, but they are still not able to bring the cost of the coin to what the coins are actually worth. “ In 2014, the Mint shipped out more pennies than nickels, quarters, and dimes put together – over 7.9 billion coins. That adds up to a loss of over $55 million for that year alone”(moneycrashers.org). That is 55 million dollars lost in that year alone because the production costs outweigh their face value, the penny isn’t the only coin that costs more money than their face value to produce the nickel costs eight cents to produce. Compared to the penny which costs a dollar seventy to produce a dollar's worth, the nickel costs a dollar sixty to produce a dollar's
Penny auctions are very popular today as people have the chance to grab amazing online bargains on all types of consumer items ranging from iPads to vehicles - at just a fraction of the retail price. If you want to get in on the heart-racing excitement which penny auctions offer you should know that there are many auction websites to choose from today and that it costs very little to bid.
Decision-makers should always think about this, not only in financial situations, but in everyday things in our lives. People will always try to create products that look appealing on the outside, but on the inside are far less valuable and well-made. But, as Gresham’s Law states, a “bad” good will always drive out a “good” good, which hurts an industry as a whole. It has been changed in to easier terms as "Silver currency will inevitably force gold currency out of circulation" (L. Pyenson, Servants of Nature (W.W. Norton, 1999) p. 21). It is something that really can not be avoided, and it will inevitably happen to any economy that runs off of currency with intrinsic