Proponents of keeping the penny in circulation say that its use avoids increased prices that will hurt low-income households the most, that pennies have a long lifespan and are more cost-efficient to manufacture than nickels, and that pennies are vital to several charities' fundraising efforts.
Preserving the penny keeps consumer prices down and avoids harming low-income households. Mark Weller, Executive Director of the pro-penny group Americans for Common Cents, says, “The alternative to the penny is rounding to the nickel, and that's something that will…
Dimes cost less than $0.04 to make, so the Mint could produce more of those without losing money. Aaron notes in his Brookings Institution editorial that eliminating both pennies and nickels would round off all cash transactions to the nearest $0.10, making for “easier math” and “less stuff in our pockets.”
Economist Greg Mankiw says that "The purpose of the monetary system is to facilitate exchange, but ... the penny no longer serves that purpose." Pennies often drop out of circulation (for example, they are stored in jars in a person's home) and due to their low value are sometimes even discarded by consumers.
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.
Retire the Penny is a commonsense, non-partisan coalition of individuals, businesses, and political leaders who understand that eliminating the penny from circulation could save the US government close to $85 million annually. The penny costs twice as much as to produce than it is worth.
The store explains: 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 long does a penny remain in circulation? On average, a penny remains in circulation for 40 years.
Most of our coins are metal sandwiches. The outside layers are three-quarters copper and one-quarter nickel, and the "filling" is solid copper. Pennies are made of zinc coated with copper. Only nickels are one solid material—that same 75% copper/25% nickel alloy.
The problem is two-pronged: The U.S. Mint significantly reduced its production of coins after implementing safety measures to protect its employees from the coronavirus. Consumers are also depositing fewer coins at U.S. financial institutions, according to the Federal Reserve.
2021 copper lucky penny
It's a great coin. Love the simplistic design it has.
But due to business and bank closures during COVID-19, normal circulation of coins through the economy was disrupted earlier this year, making coins harder to come by. And the impact of that widespread shock to spending habits continues to be felt in many places nationwide.
Yet No Comments