Since its institution as legal tender in 1797, the penny has begun to experience a surprising amount of opposition from Americans (Kahn). In the modern world, the penny has become almost obsolete; few American stores sell any product for a mere penny as it has become so devalued that it has little independent function. In fact, since 2005, individual pennies have cost more than one cent to produce, resulting in a net loss for the federal government. Ultimately, pennies have little practicality in the modern world and are of increasing consequence to the American economy.
Some people, like Edmond Knowles, may advocate for the saving of pennies. Knowles has saved an average of 328.5 dollars a year (based on his own estimate that he saves 90 pennies …show more content…
Proponents of the penny can be found in states rich in zinc (which makes up a majority of the penny), like Tennessee (Lewis). These states, and their individual communities, are at risk of economic loss if the penny is taken out of production and economic gain if the penny continues to be made by the US mint. While the economic effects in these communities should be accounted for when considering abolishing the penny should be taken into account, the loss felt by the federal government through the production of pennies is arguably more far-reaching. A 2004 poll shows that, while a majority of Americans oppose the abolition of the penny, the reaction of most taking the poll seems relatively tepid. A significant percentage is unsure about abolishing the penny, regardless of income level. There is a relatively small decrease (8%) opposition to abolition from an income level of less than $25,000 to more than $75,000 (Harris Poll). Few Americans seem particularly impassioned about the penny and many see them as a hassle. “The time has come,” writes William Safire for the New York Times, “to abolish the outdated, almost worthless, bothersome and wasteful penny.While Safire’s piece may contain inaccuracies regarding international economic policy, one thing is made clear (Weller), Safire considers the penny a “worthless” …show more content…
Canada dropped the production of their one cent coin in 2013, and since then there has been little to indicate that businesses are taking advantage of rounding up to the nearest five cents. Domestically, the penny has some importance socially, despite the inconvenience it causes businesses and banks. Since 1909 President Lincoln has been featured as the "face" of the penny and in 2009, to celebrate his 200th birthday, new penny designs to honor him took their place on the reverse side (Press Release). It is clear that the penny is a method through which people honor President Lincoln, and as such the penny has some social value. However, the rising cost of production outweighs this social value, and though he will no longer be on the penny, President Lincoln is also on the face of the five-dollar bill. Aside from its production costs, what sets it apart from the also-costly nickel is that it has very little monetary value. The nickel remains valuable to consumers, the penny does not. Because of this, the penny is uniquely ineffective, costly, and serious discussions regarding halting its production and reducing the price to produce the nickel should be
Some people, like Edmond Knowles, may advocate for the saving of pennies. Knowles has saved an average of 328.5 dollars a year (based on his own estimate that he saves 90 pennies …show more content…
Proponents of the penny can be found in states rich in zinc (which makes up a majority of the penny), like Tennessee (Lewis). These states, and their individual communities, are at risk of economic loss if the penny is taken out of production and economic gain if the penny continues to be made by the US mint. While the economic effects in these communities should be accounted for when considering abolishing the penny should be taken into account, the loss felt by the federal government through the production of pennies is arguably more far-reaching. A 2004 poll shows that, while a majority of Americans oppose the abolition of the penny, the reaction of most taking the poll seems relatively tepid. A significant percentage is unsure about abolishing the penny, regardless of income level. There is a relatively small decrease (8%) opposition to abolition from an income level of less than $25,000 to more than $75,000 (Harris Poll). Few Americans seem particularly impassioned about the penny and many see them as a hassle. “The time has come,” writes William Safire for the New York Times, “to abolish the outdated, almost worthless, bothersome and wasteful penny.While Safire’s piece may contain inaccuracies regarding international economic policy, one thing is made clear (Weller), Safire considers the penny a “worthless” …show more content…
Canada dropped the production of their one cent coin in 2013, and since then there has been little to indicate that businesses are taking advantage of rounding up to the nearest five cents. Domestically, the penny has some importance socially, despite the inconvenience it causes businesses and banks. Since 1909 President Lincoln has been featured as the "face" of the penny and in 2009, to celebrate his 200th birthday, new penny designs to honor him took their place on the reverse side (Press Release). It is clear that the penny is a method through which people honor President Lincoln, and as such the penny has some social value. However, the rising cost of production outweighs this social value, and though he will no longer be on the penny, President Lincoln is also on the face of the five-dollar bill. Aside from its production costs, what sets it apart from the also-costly nickel is that it has very little monetary value. The nickel remains valuable to consumers, the penny does not. Because of this, the penny is uniquely ineffective, costly, and serious discussions regarding halting its production and reducing the price to produce the nickel should be