Should the US Government eliminate the penny?

Question

Most people say they should cuz they have really no need for pennies anymore. People drop them on the ground but don't bother to pick them up. Plus, they just serve as spare change.

I think they should not.
If they eliminate the penny that would lead to net totals rounding out to the nearest 5 or 10. that would cause major inflation and that I do not want. We have inflated enough.
Regular sized candy bars used to be 59 cents when I was a kid and now it's like 79 cents. If the penny was eliminated, the candy bars would be rounded to $1. then $1.10

Answer 1

"A penny saved is a penny earned" according to Ben Franklin. He's right. Throw them in a jar and see how fast they add up.

Answer 2

The treasury has been toying with the idea for some time now, of eliminating the penny.

Pennies enter circulation when the Federal Reserve branches purchase them from the US Mint and they are later shipped out by special armored carriers. The Federal Reserve Bank pays only for the cost of printing and makes a tidy profit from currency. Coins are different. the coins are purchased at face value. When a bank needs coin or currency, they pay for the coin or currency using a special Federal Reserve account that operates like a big commercial checking account. The Federal Reserve then sells the coin and currency at face value and retains a small, tidy profit on currency sales.

Because the penny serves a purpose in providing exact change, it prevents merchants and vendors from forcing you to pay MORE just because the penny is no longer legal coin (not tender which is cash). That's why we love it and hate it at the same time. Most people won't bend down to pick up a penny (though I will because I keep them).

I have been anticipating the demise of the penny for years now, and save every one I don't use in "trade" so to speak. At some point the government will probably replace it with a coin made of cheaper metal or plastic.

Currently the coin is a mix of zinc and other alloy clad in a copper-like coating. I can see them going to aluminum alloy with some other material inside that is recyclable.

Twenty five years ago the U.S. Mint started phasing out copper pennies. Only a few 1982 pennies are made of copper. Most of them contain the new formula. The rationale behind that was that copper was driving the cost of production of the penny up past a penny!

According to the U.S. Mint, the average lifespan of a penny today is 25 years, before its recalled and recycled into new pennies. However, personal experience tells me that pennies have been in circulation since the indian head cents, and I have found pennies from the 1850's to the present in my pocket change.

Another fun fact is that during WWII, the US Mint made some pennies from steel because we needed the copper to make ammunition and war materials. Pennies have also been made out of nickel and bronze depending on which century and what era.

The post office used to print fractional paper currency, which included pennies, half-pennies, 2 and 1/2 cent and 3 cent denominations which could be traded for stamps or coin.

But I think it will be quite sometime before the penny gets phased out altogether.

It may very well be that 50 years from now, if you want a minted penny, it will cost you more than 1 cent to get it and it will be in a special mint, uncirculated or proof coin set such as what the Treasury sells directly online.

Answer 3

Eliminating the penny would not cause inflation, rather it would be an effect of inflation. Inflation is caused by injecting more money into the system than what production calls for and it is caused by the Federal Reserve. That's right! The very institution that pretends to be fighting inflation is the one who causes inflation.

There are many good sources on the Internet that can explain the causes of inflation. You'll find that contrary to the claims made by business owners, inflation is not caused by rising wages or an increase in the minimum wage. In fact, wages have lagged behind price increases in every inflationary epoch.

An interesting movie that I saw last year on the issue of currency is Fiat Empire. It is available on the Internet and I've included the link.

Answer 4

pennies aren't made out of copper any more they are zinc coated with copper so the penny is too expensive to make argument isn't true and the idea that if we get rid of the penny copper mines will disappear just isn't true there is more copper in a 5 cent bullet than in 10 pennies however we SHOULD NOT get rid of the penny because business would take advantage of the situation just as you argued

Answer 5

Yes, because they cost too much to make. A penny is worth more than a penny. That's bad. I also don't like how they stink personally.

Instead of 79 cents it would be 80 cents, not a dollar.

Answer 6

I really hope they don't eliminate the penny. The inflation is something our nation doesn't need. Also, I would be so sad to see something that we have had for so long to just disappear. Call me a sentimental, but I don't want pennies to dissappear. With them we would lose penny candy and penny loafers. It just makes me sad. Long Live The Penny!!!!

Answer 7

The copper in the penny is now worth more than the face value of the penny

Answer 8

No because like you said pennies are what make exact change. Companies will end up rounding thier prices up without the penny causing us to pay more.

Answer 9

.Yes... the government is trying to because it costs 1 1/2 cents to make 1 penny. Slowly the government is losing money from minting them

Answer 10

If they do everything will cost you more. By the way there is little copper contained in a penny. The penny is made from zinc, and is then clad (coated) with a minuscule amount of copper.