Should We Get Rid of the Penny? (2024)

FAQs

Should We Get Rid of the Penny? ›

Without them, stores and restaurants might round up prices, so most things would cost more. Though many people don't use pennies, they still have value. They come in handy when you're making a purchase and don't have other change.

Eliminating pennies would save time at the point of purchase without hurting customers or businesses financially. The use of pennies in paying for goods and making change adds time to sales transactions.

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.

Eliminating the penny could harm low-income families.

Because prices would be rounded up and because the people who use cash the most are the poorest fringes of American society, the poor would be most affected economically by the penny's removal.

In the United States and the UK, the penny has not been discontinued. I have some pennies in my pocket right now. Canada has ceased the production of pennies and the US should also. It costs more than a penny to mint a penny.

Removing the penny from circulation will have significant adverse direct effects on consumers. Simulations show that the resulting need to round prices will generate a rounding tax of no less than $600 million a year. The inflationary impact of rounding will probably be small.

While losing that extra few cents here and there may not impact many people, those few cents would build up and people would start spending more money on things without even realizing it. This would likely lead to a slightly higher inflation rate— something the United States knows can lead to disaster.

The U.S. Mint has no plans to discontinue the penny, and such a move would require congressional approval.

1974 No Mint Mark Aluminum Penny Value

All others have been recalled, donated to a public institution, or destroyed. This coin is worth an estimated $160,000. Finding one today in uncirculated condition can fetch you as much as 2 million US dollars.

Some copper pennies are going for as much as $2 apiece. Buying pennies is more affordable than buying gold, and they can be a little easier to store. At least you don't have to worry as much about theft. Some businesses will store large bags of copper pennies on your behalf in secure locations.

How much money would we save if we got rid of the penny? ›

If we got rid of pennies, the government might have to make more nickels. In 2023, it cost more than 11 cents to make each nickel! So the government might not save any money after all. Also, pennies help keep prices down.

If you want to use pennies to buy from a vending machine, you would have to insert a handful of them. This is just not practical, and so vending machines have been programmed to not accept pennies for this reason.

The new bill costs 12.6 cents to produce and has a blue ribbon woven into the center of the currency with "100" and Liberty Bells, alternating, that appear when the bill is tilted.

Preserving the penny keeps consumer prices down and avoids harming low-income households. A penny can be used for decades and is more cost-efficient to produce than a nickel.

While federal law states that coins are legal tender, it does not compel anyone to accept them. If a business doesn't want to take pennies — or a $100 bill, for that matter — it has a legal right to refuse them. So why does the government keep the penny around? The answer is simple: sales tax.

Factors like the coin's condition, the year it was minted, and its rarity all play a part. Most wheat pennies are worth between four cents to $4 on average. However, some rare and highly sought-after ones can fetch thousands of dollars at auction.

A) The mining process of zinc produces cadmium and lead, contaminating the water, soil, and plants surrounding zinc mines; (B) Penny transport to banks alone puts about 1.5 million metric tons of carbon dioxide into the atmosphere each year.

In 1982, the fast-rising price of copper forced the U.S. Mint to change the composition of the penny to primarily zinc, with pure copper plating. This change allowed the “copper” penny to retain its traditional appearance.