With advancements in technology, objects are becoming readily obsolete. In the past, individuals predominately relied on cash in order to purchase goods and services. In this economic structure, pennies were considered a worthwhile denomination because prices are listed in dollars and cents. However, as the United States is becoming more modernized and the value of the penny increasingly diminishes, the penny coin should be eliminated to increase economic efficiency.
The penny should be eliminated because in our quickly modernizing world, credit cards, debit cards, and checks are replacing paper money and coins. Pennies and many other low-value coins have been “shoved out of the economic picture by charge cards” (Source B). Most people, including children and teens, attain these cards because they are a simple and fast way to purchase goods and services without wasting the consumer's and the employer's time. Compared to charge cards, pennies have become “practically useless in everyday life” (Source A). These technological advancements increase efficiency because it does not require an individual to count out a certain amount to give the cashier or the cashier to give back exact change to the consumer. Rather than counting dollars and coins, it is as easy as swiping once and signing. Our world and economy is changing, it is time we stop living in the past and eliminate the worthlessness and inefficiency that is inherent with the penny.
Not only are pennies becoming less useful due to technological advancement, but also since prices are inflated yearly, the value of the penny has decreased over time. With a “pedigree dating back to 1787” (Source B), pennies have slowly, over the years, become useless to the people who attain them. In 18th and 19th century, pennies were useful because the penny itself could be used to purchase certain goods and services. Bread, for example, only cost a couple of pennies. However, iEssays Related to The Value of a Penny
With rising inflation, the value of the penny has decreased significantly. Most people try to get rid of their pennies at any chance they get. Some people find that opportunity when they leave a tip, find a wishing well, or pass by canners on the side of the road. Often, consumers will tell the cashier to keep the change if the change is a few pennies. Many pennies are dirty and disgusting making people not want them and possibly dispose of them. Some people drop pennies on the ground and do not even bother picking them up because of their worthlessness.Waste of Time
The production of pennies consumes time for making, transporting, and distributing them. At a cash register, on average and extra 2.5 seconds is taken to deal with pennies (“What Can You Buy…”). It can be a lot longer when the buyer has to search for their last penny to pay for an item. Compared to minimum wage, it is not even worth picking up a penny unless it can be done in 6.15 seconds (Headley). On average, 2.4 hours per year are wasted by a single person dealing with pennies (Headley).Expense of the Penny
Since inflation continues to rise and the value of the penny cannot change, the cost to make each penny increases. In 2011, it cost around 2.41 cent to make a single penny, which is almost two and a half times more than its face value (“Cost to Make the Penny”). During that year, 50 million dollars worth of coins went into circulation for a price of about 120 million dollars (“What Can You Buy…”).Solution
Stop the production of pennies! The main concern with this is that prices are not usually nice intervals of five cents. Instead prices can be rounded to the nearest five cent interval. Most consumers will still use credit cards, debit cards, or checks, making unrounded prices still possible.Opposition
The main opposition to eliminating the penny is that people make charitable donations with pennies. But people will still donate their change whether it is pennies or any other coins. Some believe that it is an insult to Abraham Lincoln to discontinue the penny, but Lincoln is also on the five dollar bill, which has a greater value than the penny does.Works Cited
"Cost to Make the Penny." Cost to Make the Penny. N.p. n.d. Web. 9 Oct. 2012.
Headley, Susan. "The Penny Debate - Should We Keep the Penny or Get Rid OfÂ It?" About.com. N.p. n.d. Web. 9 Oct. 2012.
"What Can You Buy with a Penny?" Citizens to Retire the U.S. Penny. N.p. n.d. Web. 9 Oct. 2012.
Additional contact information
Andrew Keinsley: Department of Economics, The University of Kansas
Abstract: For decades, economists have debated the price-rounding effect on the economy if the penny is eliminated. Deviating from the bulk of the literature, which typically considers case-studies with empirical simulations and data manipulation, I evaluate a multiple household, deterministic model with endogenous currency production. My findings suggest that the elimination of the smallest unit of currency has a “nickel-and-dime” effect on the economy, regardless of the rounding policy. This structural model is constructed and calibrated to emulate a “worst-case scenario”, but it is also robust to the empirical results in the literature.
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In 1999 the Euro became an official currency in eleven countries. Euros were used with accounting for the first three years of its existence. It wasn’t until 2002 that it replaced national currencies, banknotes and coins. Now the Euro is used in 17 countries on the European Union. This currency helps banks supply this cash.
You might use a five dollar bill daily, but might not know who the man is in the bill, his name is Sir Wilfrid Laurier, and this essay will give you a better understanding and knowledge towards Canada’s government and Prime ministers, especially Sir Wilfrid Laurier. Sir Wilfrid Laurier, Canada’s seventh prime minister, was.
The penny should be eliminated from U.S. currency. The penny can no longer buy anything and only adds extra time and stress to transactions. Pennies need to be eliminated as they no longer useful anymore. With increasing prices “it’s practically useless in everyday life” (Source A). This shows how the obsolete state of the.
On June 6th of 1837, Emily Austin Perry and two of her children, Eliza and Guy, have been traveling for the past three weeks in the United States. Their excursion to the United States was due to a matter of Emily’s health that started to degrade from the move to the Republic of Texas about five years earlier. Now in Louisvi.
Introduction During the past two decades, financial markets around the world have become increasingly interrelated. Financial globalization has brought considerable benefits to national economies and to investors, but it has also changed the structure of markets, creating new risks and challenges for market participants a.
When a company begins a transaction in a foreign currency, it accepts an economic risk due to fluctuating exchange rates. The globalization of the world economy and the devaluation of the U.S. dollar have allowed more American companies to enter the export/import markets. Additionally, many managers who previously avoided t.
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CONTENT 1. Introduction2 2.The Monetary Union2 2.1. Advantages of a single currency2 2.2. Disadvantages of a single currency3 2.3. Conclusions for the Eurozone4 3.The British Perspective5 3.1. Reasons against joining5 3.2. Reasons for joining6 3.3. Conclusions for Britain7.
Our governemt is very mean,
I just heard about this scheme.
They want to take away our cent,
And about this I will vent.
I know the price of copper's high,
And nearly reaching to the sky.
Our penny is a cherished coin,
And it's here it does belong.
We've had this coin forever now,
Please don't take it, I'll avow.
I like to see these pennies lie,
All around and multiply.
I save them in a little jar,
And count them once it fills so far.
I take them to the bank and then,
Put them in a savings plan.
I know some people find this funny,
But it's one way to save money.
If the penny goes away,
I will have a dismal day.
I guess the nickel will be the next,
To save in the jar that's on my desk.
It simply will not be the same,
Nickels are a different game.
Please U S Mint let us choose,
We want our pennies to reuse.
Don't let this coin be in our past,
I really want our cent to last!
This idea has very real merit to it… read on
I have contemplated this many times in the past, and it happened once again today when looking at a sign for the price of gas. 2.24 for a gallon of gas, 49 cents for a candy bar, 1.09 for a 20 oz. pop, 19.99 for a DVD. By now I hope you are getting the picture.
I say, let us eliminate the penny, completely. The lowest denomination of money should be the nickel. What does anybody ever do with pennies that they get as
change? Throw them in some jar? So 5 years later you can count out 1,300 pennies, roll them into 13 ‘penny rolls’ and cash them in at the bank. Wow, that is well worth 13 dollars.
I dont even care if people round up. I’d rather spend 150.00 even on an X-box than 149.99. I’m no “economist”- but it seems like the time, money, and effort saved by NOT manufacturing pennies in the first place would more than make up for any round ups that would inevitably occur. There really must be some better use for the tons of copper that are just sitting in peoples houses across this entire country.
Sound stupid? Pointless? maybe. But seriously think about it.Reply Cancel reply
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Pennies are smallest coin the United States has; size and worth. The penny is also the oldest piece of money the United States bears. A penny is not only used to buy things, it also signifies luck to some and is used to play heads and tails for others. Money is used in everyday life, pennies being a significant amount of that money. One may use a penny, but never ponder the significance of it. Pennies are a useless coin and should be eliminated. Our economy is changing, times are getting harder, and as a result there is no point to a one cent coin.
Pennies are worthless in today’s economy. Times have changed since the penny was first invented. One cannot buy anything with a penny anymore. There is no such thing as penny candy, and Five-and-Dime stores are now Dollar Stores (source C). What could be bought with a penny before cannot be now. Plainly, things are worth more now. Pennies do not have the same worth they did in previous years.
Too much time is wasted on pennies. Through calculations, it is estimated that about 40 seconds per day per person, 4 hours per person per year, equaling to be about 60 dollars per year are wasted on searching for pennies (source B). You know what they say, time is money. One does not think about all the time that is wasted on searching for pennies. In order to pay for an item, one will literally fish through their pockets in order to find a penny. It can be figured that too much time is wasted on pennies.
One may say that the penny is a significant part of history holding a great historical worth. The penny holds a historical importance being “the most visible and tangible reminder of Lincoln’s significance in American history (source F).” If one were to think about this, it can be concluded that there is no fact in this statement. As shown in source G, in 1793 a different face appeared on the penny. Therefore, the penny is not only showing the historical importance of Abraham Lincoln, but also another famous person in our American history. Coins change with history. A new face could appear in another couple of years. Something that changes cannot be a historical artifact. The penny is not a significant part of history.
Though the use of pennies is still ubiquitous in our society, the worth of the penny is the same as it was years ago. Congress has contemplated eliminating the penny many times, but never followed through with it. With our growing economy, the penny is not worth much. Considering the insignificance of the penny, the wasted time, and the irrelevance of the penny, one can suggest that the penny should be eliminated.Share this:
By Susan Headley. Coins Expert
Updated February 19, 2016.
The U.S. Cent, or penny coin, has almost no purchasing power today. The cost of making the pennies (1.26 cents each) is higher than face value, and the melt value of pennies ranges from more than 2.4 cents for the pre-1982 copper pennies. to nearly a full cent for the zinc pennies. However, the penny is a very sentimental coin to most Americans, and many people fear that eliminating the penny would raise prices because things would need to be rounded to the nickel.
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Both sides in the penny debate make some good points, and the solution is far from being an easy decision. This article takes a look at the issues involved in the pro-penny and the anti-penny debate so that you can make up your mind about where you stand in this important matter.
The United States has eliminated a small denomination coin in the past with relatively little trouble. In 1857, the Mint stopped making the Half-Cent coin, partly because the cost of making it had exceeded its face value, and partly because it was considered to be so small a denomination that it was no longer needed.
Back in 1857, the Half-Cent had purchasing power that would translate to well over ten cents today, so in some ways it was akin to our eliminating the dime. Yet, commerce continued without any major hiccups, despite the fact that the penny coin suddenly shrunk from a hefty, one-inch-plus in diameter chunk of copper that weighed almost 11 grams, to a penny that was less than half the weight and 40% smaller than the previous coin.
Other major changes in U.S. coinage have also occurred without any catastrophic effects on commerce, such as when the 90% silver dimes and quarters were changed to base metal clad versions in 1965.
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A few people groused about it, but commerce continued unabated. There have been several other more minor changes in the coin metal, ranging from temporary wartime alterations during World War II, to more permanent switches like using zinc instead of copper for the penny, and changing from the cupro-nickel clad dollar coin (the Susan B. Anthony) to the "golden dollar" type used in the Sacagawea and Presidential Dollar types. None of these changes caused any significant problems in commerce.
Many foreign nations have completely eliminated their most minor denominations with almost no impact on commerce or consumer confidence in the monetary system. New Zealand got rid of its penny and two-penny coins without incident back in 1989, and in 1991 replaced their two lowest paper denominations with coins. In 2006, New Zealand eliminated the nickel, and while they were at it, they significantly shrunk down the rest of the coins. All of this numismatic change took place without any major problems.
History has shown us that updating the monetary supply in countries where the currency is very stable has had little, if any, negative effect on the economy, or on people's acceptance of the coinage.