PENNY: Getting rid of the penny proposes more loss than gain in the long run.
By Amy Wang, Staff Writer
Pennies have been a part of our American history since the very beginning. They represent our country just as the American flag does. Lately however, there has been debate as to whether or not the government should stop making these pennies entirely. Those who support getting rid of the supposedly pointless penny argue that the cost of producing a single coin is higher than its value by .26 cents. In our country’s current economic state, citizens do not want to pay taxes for coins they rarely use.
However, the same can be said about other coins. The nickel costs almost ten cents to make today, and by eliminating the penny, we would become more dependent on the nickel instead. This dependency would create the need to manufacture more nickels, which would harm our economy even further than the penny ever could. Many do not believe that the penny is useful today. While in the past its worth was higher in proportion to prices (for example, a couple of cents could buy you a loaf of bread), these days you virtually cannot buy anything with pennies alone. Nowadays, most people do not even take the time to shuffle through their wallets to find enough pennies to pay for their purchases; they would much rather settle for getting change back.
However, what would that change be in if our precious pennies were to disappear? Having said that, getting rid of the penny would cause prices to be rounded to the nearest nickel. Businesses would not want to lose those few cents every transaction by rounding down, and customers, in turn, would reciprocate this feeling if prices were rounded up. Although one penny does not seem like much at first, the overall effect over the years could cost millions in the long run. Charities also depend on this tiny coin for fundraising. Even a few pennies here and there from passersby can amount to thousands in funds for their organizations. For instance, the Leukemia & Lymphoma Society raised over 1.5 billion dollars in pennies alone! If not for the economic reasons, there is also the sentimental value that goes beyond a mere cent. Pennies are a traditional coin, dear to our hearts, even if many do not realize it. It has been a part of our daily regimen for years now, and to dispose of it would be to dispose of a piece of our history.
There are more than two possibilities in this argument though. A much simpler solution would be to change the composition or even the structure of the coin in order to cut costs. This way, we can keep the coin in our economy and appeal to those worried about its manufacturing cost. In fact, President Obama has a 2013 budget plan that includes letting the U.S. Mint change the composition of coins to less expensive metals. This would not be the first time it has happened; after all, the penny (primarily copper) has changed five times over its entire history, and is now made mostly of zinc.
Although the tiny coin does not seem very significant in comparison to its more widely used brothers, it is still a fundamental part of our economy. We benefit more from keeping the coin than getting rid of it. Pennies keep prices in check for everyone, and although it may not seem like such a big deal when something is $4.99 instead of $5.00, it sure adds up in the long run. Getting rid of the penny is not the solution. A new composition for the coin is a much better idea. Besides, what would happen to our beloved 99¢ Only Store if we disposed of the penny? It would turn into another Dollar Tree, and that is just wrong.