Headline from the Arizona Republic's "Plugged In" blog on 19 June 2006.Is it time for the U.S. to dump the penny? [...] "Kolbe argued that the 1-cent piece featuring President Abraham Lincoln's visage has outlived its usefulness." [...]
On 22 April 2006, we created GDT::BAB:: Zinc Prices and the Value of a Penny and learned that because of rising zinc prices it cost more than a penny to make (i.e. mint) a penny. [Pennies are mostly zinc with a copper coating.]
GDT posted a penny related "comment" to the Repblic's blog and it prompted somebody else to post a comment.Comment from: Gerald8100 06/19/06 @ 16:27 "There are many people who ignore pennies when they shouldn't be ignoring pennies. Pennies are money and they add up. I'd be more than happy if every American gifted me a penny." Comment from: Desert4628 06/19/06 @ 21:17 "Until early last year, I've been saving pennies for ten years. Finally, I took them to the change machine at my local supermarket. I had $60 in pennies!"
As of around
20 June 2006, the U.S. population approximated
There was also the following penny related posting that contained some math.Comment from: a1ac4 06/19/06 @ 15:22 "As for it being the 'base' of our monetary system: Says who? We essentially consider the dollar as our base, and the penny is only 1/100th of a dollar. If we are going to continue to price gasoline in thousandths of a dollar, maybe we should have a coin for it also, just to be consistent. Ridiculous, no?"
The "Nation" section of the Sunday, 9 July 2006, Arizona Republic (page A22) had an article titled "A penny saved is ... just about worthless." The article included a picture of a man who "traded in
4.5 tonsof the coins recently for more than
$13,000in greenbacks." The man collected pennies for
The Arizona Republic editorialized about the penny and they advocated keeping it. The primary justification for "killing" the penny is that is cost more than a penny to make a penny, but these days it currently costs more than nickel to make a nickel.
Representative Jim Kolbe of Arizona introduced legislation that would "require all cash transactions to be rounded to the nearest five cents, effectively eliminating the penny." Kolbe's bill would "also fold the Bureau of Engraving and Printing and the U.S. Mint into the Federal Reserve, mandate a study on alternative coin compositions and create a process to replace the dollar bill with a $1 coin."
As of this update, it cost about
1.23 centsto produce a penny. Note: the penny is 97.5% zinc and 2.5% copper.
The following was copied from the Wall Street Journal and pasted into the Arizona's "Plugged In" blog."Not to be melodramatic, but eliminating the penny would wave a symbolic white flag before the forces of inflation. Taking coins out of circulation is an act that one associates with nations like Argentina, Bolivia and Mexico that periodically degrade their peso currencies and create hyperinflation. Moreover, the market works. If American consumers don't find value in using pennies, they are free to conduct their transactions without them â drop the change in the jar for Jerry's Kids. It turns out that one social value of pennies is that they help charities collect millions of dollars in donations each year - yes, one red cent at a time."
The Wall Street Journal agrees with the title for this BAB: "Pennies are money."
Pennies were the topic of another AzCentral.com "Plugged In" blog posting. The blogger believes pennies should go away for good. Typically, the topic of pennies means math and this blog posting was no exception."I vividly recall going to many movies with ten pennies; pennies acquired by gathering empty milk bottles -- that's right, milk bottles -- four bottles turned in at the grocery store at three cents per, garnered 12 cents, a dime for the movie and 2 cents for candy, often two Tootsie Rolls." [source: AzCentral.com "Plugged In" by Bob Amento on 1/27/2007]
AzCentral.com:: A Penny Here; A Penny There---Pennies Everwhere
Creator: Gerald D. Thurman
Created: 20 June 2006