Take one, leave one. Numerous advocates and adversaries exist for the one-cent coin. For a long time now, it has cost more to produce it than the value it represents. When they were young, your grandparents likely spent only a few cents on a handful of candies and a bottle of Coke. With cashless transactions, people will no longer keep change or quarters, but it is highly advisable to keep change with you since there are multiple ways to exchange quarters for dollar bills.
To purchase anything in a shop today, you would need to transport at least a hundred of these coins. Even though most pennies seem to spend their days in jars, we still can’t seem to give up on them. What are the reasons for and against the penny? Read on to find out.
Reasons For Penny To Stay
People are so attached to the history of the USA that they can’t just bear the loss of the penny. This coin first appeared in 1793. A big part of Americans considers it as a part of their cultural heritage. For that reason, there are so many examples of why we should keep the penny essay that everyone can find and learn from it. The penny essays may be a base for forming your opinion on the subject. Americans do have a sentimental value for the coin. That is an undeniable fact.
Many people in the United States are also concerned about the “rounding tax.” Businesses would presumably round-up pricing ending in $.99 to the closest dollar if the coins were no longer in use. Estimates suggest a yearly cost to consumers of $600 million. Because low-income people tend to make more frequent, smaller purchases, they are more likely to be negatively impacted by the practice of rounding up.
Penny drives are a vital source of revenue for many underfunded organizations. In favor of such campaigns, people gladly empty their old jars, but they are more hesitant to part with other coins.
Other Coins Are Expensive Too
Making a nickel is considerably more expensive. If we do away with the penny, we’ll have to replace it with more nickels. Manufacturing a nickel costs 7.29 cents, which is 1.3 cents more than making a penny. Of course, the demand for five-cent coins would increase dramatically if the coins were no longer in circulation. And it would cancel any savings from ending the production of one-cent coins.
Arguments Against Keeping the Penny
So, why should we get rid of the penny? The value of a penny has decreased over time. The coin 100 years ago bought nearly the same as a quarter does now. So, it seems pointless to have it in terms of buying goods and services. Manufacturing pennies costs the government money. Today, the price of coin making is more than 2 cents for each one.
Harm For The Environment
Zinc and copper are used to make 3-cent pieces, and zinc is toxic. Using zinc in industry and mining both pose risks to human health and the surrounding ecosystem. Zinc may leak into the land, water, and air during different industrial activities. It poses a health risk to anyone in the vicinity.
They Are Not Convenient In Many Ways
Weighty little things, those pennies. While each one is merely 2.5 grams, their total mass is significant. 7 It would take nearly half a pound, or 250 grams, of pennies to equal one dollar. Remember that the actual weight of a single dollar note is merely one gram.
Are there more reasons why the penny should be removed? Today, not many purchases are made using cash. And there is a significant drop every year. The most popular method of payment is debit cards. This fact makes even paper money seem not very useful, especially pennies.
Is the penny going away? That question deserves thorough research before exact answers. The coin’s future may rest not with the legislation but with companies’ choices. Consumers may have less disposable income if they adopt the practice of rounding down bills. Banks will have less of a need to provide pennies if businesses and consumers quit stockpiling them.
Because of the decline in annual demand, fewer pennies probably will be produced in the future. This tendency may speed up if the C0VID-19 pandemic spreads. It’s giving shopkeepers even more incentive to limit their interactions with customers paying with cash. That’s why we’ll probably soon see mention of pennies only in books.