Should we eliminate the penny?

Asked by: Baylee Morissette
Score: 5/5 (15 votes)

Economist Greg Mankiw of Harvard University argues that pennies are simply no longer useful as a means of exchange: “When people start leaving a monetary unit at the cash register for the next customer, the unit is too small to be useful.” There are precedents for getting rid of coins that are too small to use.

Should we get rid of the penny pros and cons?

  • Pro 1. Preserving the penny keeps consumer prices down and avoids harming low-income households. ...
  • Pro 2. A penny can be used for decades and is more cost-efficient to produce than a nickel. ...
  • Pro 3. The existence of pennies helps raise a lot of money for charities. ...
  • Con 1. ...
  • Con 2. ...
  • Con 3.

What is the best argument for eliminating the penny?

10 Reasons to Get Rid of the Penny
  • Pennies don't buy as much as they used to. ...
  • Producing the penny costs taxpayers money and adds to the national debt. ...
  • Pennies are made of zinc and copper. ...
  • Most of the zinc for penny manufacturing is imported from China. ...
  • Pennies are heavy to carry around.

Is it time to eliminate the penny?

It costs about 2 cents to mint a penny, so the government loses money by producing them. However, even if minting costs were zero, it would still be time to eliminate pennies, because our time is valuable and pennies waste time. ... But using a penny generally adds more than two seconds to the average retail transaction.

25 related questions found

Will 2020 coins be valuable?

The value of a 2020-W quarter is based on the condition of the coin: A worn 2020-W quarter can fetch between $5 and $10. A 2020-W quarter in average uncirculated condition is generally worth $15 to $20. The nicest 2020-W quarters — those grading Mint State-68 or better can bring more than $500.

Why pennies are bad for the economy?

The Penny Hurts the National Economy

Given the 107 billion cash transactions per year in 2012 (US Federal Reserve Payments Study), using pennies therefore wastes 120 million hours of time per year counting the time of both the customer and the store employee.

Why is the penny useless?

The penny is basically worthless. Actually, it's worse than worthless. It costs the U.S. government about 2 cents to produce every penny. ... It takes most of us more than two seconds to fumble around with change or pick a penny off the ground, which explains why there are so many pennies on the ground.

Why did Canada get rid of the penny?

The Royal Canadian Mint stopped producing and distributing pennies in Canada as of February 4, 2013 due to rising costs relative to face value and the significant handling costs of the penny for retailers, financial institutions and the economy in general.

Why do pennies still exist?

Why Do Pennies Still Exist? Pennies have almost no purchasing power; it costs more to mint a penny than a penny is worth; and the U.S. Mint could cut its workload significantly just by ceasing production.

Why do charities rely on pennies?

First, consumers benefit with a low denomination coin. The penny helps keep high prices in check. The alternative to the penny, rounding prices to the nickel, hurts consumers. ... Groups like The Salvation Army and Ronald McDonald House Charities rely on these small contributions that prove the penny's value.

Why is the penny so important?

Those who favor keeping the penny believe the penny plays an important role in keeping down the costs of the goods and services we buy. If there were no pennies, stores and restaurants would round up to the nearest nickel. This means consumers would end up paying $0.55 for something that should cost only $0.51.

How can I get rid of pennies?

If you don't want your pennies, your bank will take them. Count them out, roll them in coin wrappers (ask your bank if they can give you some for free), and deposit them into your account. There are a few banks that will count coins for free and exchange them for bills so you can walk away with cold, hard cash.

What years to look for on pennies?

Here are 12 more valuable Lincoln pennies that you should definitely check for if you happen upon a very old penny.
  1. 1943-D Lincoln Wheat Cent Penny: Copper/Bronze.
  2. 1944-S Lincoln Wheat Cent Penny: Steel Cent.
  3. 1943-S Lincoln Wheat Cent Penny: Bronze/Copper.
  4. 1943-P Lincoln Wheat Cent Penny: Bronze/Copper.

What is the rarest Kennedy half dollar?

A 1964 Kennedy Half Dollar Snatches A World-Record $108,000! A 1964 Kennedy Half Dollar sold for a world record $108,000, making it the most expensive coin of its type, during a public auction of rare U.S. coins held Thursday, April 25, 2019, by Heritage Auctions.

What can I do with old pennies?

Where can I bring my pennies for redemption? Canadians may redeem their pennies at their financial institution. Financial institutions may require that pennies be properly rolled. Canadians may also consider donating them to charities.

What did Canada do with all the pennies?

The Department of Finance killed the coin in the 2012 Budget because they had lost their value, minting the last penny in Winnipeg on May 4, 2012. ... The mint has redeemed 4 billion pennies since they stopped distributing them in 2013.

Does Royal Bank still accept pennies?

Banks. A safe, reliable way to cash in your Canadian pennies is just to go to your local bank. Any large corporate bank will accept your pennies. ... So if you bank with any of the big guys, such as Scotiabank, RBC, TD, BMO or CIBC, you can be sure they'll accept your pennies – but remember to roll them.

Did Canada get rid of the penny?

Unsourced material may be challenged and removed. In Canada, a penny is a coin worth one cent, or 1⁄100 of a dollar. ... Production of the penny ceased in May 2012, and the Royal Canadian Mint ceased distribution of them as of February 4, 2013. However, the coin remains legal tender.

Will there be a 2023 penny?

To celebrate President Lincoln's 200th birthday in 2009, the penny changed once again. Over that year, the U.S. ... Mint will officially phase out penny production in late 2022, and it'll complete its last batch of penny production on April 1, 2023.

Is it worth saving copper pennies?

Today, the amount of copper in an old penny is worth a little more than 2 cents. However, zinc pennies made since 1982 are presently worth only face value.

How much is a 2021 penny worth?

Most 2021 pennies in circulated condition are only worth their face value of $0.01. These coins can only sell for a premium in uncirculated condition. The 2021 penny with no mint mark and the 2021 D penny are each worth around $0.30 in uncirculated condition with an MS 65 grade.

Why are pennies bad for the environment?

Making pennies wastes natural resources and is toxic to people and the environment – Pennies are 3 percent copper, and 97 percent zinc and are primarily made from virgin ore. The process of refining both metals can release sulfur dioxide (SO2), lead and zinc into the environment.

How much is a copper penny worth?

The Copper and Zinc in a Penny

5 The price of copper on Dec. 10, 2019, was $2.75 a pound. 6 That meant the copper in each penny was worth about 1.7 cents.

What penny is worth a lot of money?

The 1943 copper-alloy cent is one of the most enigmatic coins in American numismatics — and reportedly the most valuable Lincoln penny of all.