Just Get Rid of the Penny, Already
Posted on March 2, 2008 in Editorials
It has always seemed to me that the penny is an extraneous piece of currency, and we might as well do away with it.
I have a plastic cup on my desk which holds my spare change, for those odd times when I need it.
Right now, there’s no silver to be found in the cup–I’ve used all of the nickels, dimes, and quarters. Only the pennies are left. I doubt I’ll ever use any of them.
Most vending machines won’t even accept the coin.
There just doesn’t seem to be any practical use for the penny.
When it comes to buying something at the store, people are usually more likely to hand over a set of bills to the cashier than count out the change. The exception to the tendency is when the cost is a convenient amount–something like $10.75, $3.05 or $5.30. Nickels, dimes, and quarters are easy enough to quickly count that people are actually likely to take the time to do so.
But pennies are more hassle than they’re worth for most consumers.
They cost more to make than they’re worth, too. In July 2006, the cost to mint a single penny was determined to be 1.4 cents.
Of course, if the penny were to be eliminated, prices would have to be rounded to the nearest five cents. Many people don’t like the idea of that. But the changes would generally be negligible.
A 99 cent toy would instead cost a dollar, and a $1,549.77 television would cost $1,549.75.
The rounding, of course, would only be necessary when the customer is paying with cash. Cards and checks wouldn’t be subject to the need to round.
One argument against the elimination of the penny is that doing so would be hiding the effects of inflation. But inflation is inevitable, and as prices rise, the value of the penny becomes less and less. It only makes sense to cut the penny out of the equation unless the government decides to revalue currency as a whole. It’s not hiding inflation, it’s adapting to it.
Besides, there is plenty of precedent for doing away with the one-cent coin.
Australia, New Zealand, Sweden and numerous other countries no longer use their one-cent coin.
The only argument for preservation of the penny which I consider significant is that its elimination would increase demand for the nickel, which, at 5.5 cents a nickel, also costs more to make than it’s worth. But I use nickels. When I see one on the ground, I pick it up and pocket it.
I can’t remember the last time I stopped to pick a penny up off of the sidewalk.
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While I agree with the penny part, most people seem to think that doing away with the nickel would be a good idea as well. We need to move to the metric system were everything flows with powers of 10.
It would be so much easier.
I have always hoped that the production would cease. There are so many pennies not in circulation that stopping production would bring them back into the market. Furthermore, if it becomes clear the penny is truly required to go about our day to day purchases, then produce a few batches every ten years. However, I do not think there would be any need to produce more for some time. Personally, my pennies go in a large jar that I take to the coinstar for a certificate to itunes.