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Every year, the United States Treasury Department loses over $100 million on minting pennies. There is a heated debate between people who are in favor of the penny and people who believe the penny should be removed from circulation. The penny should be removed from circulation for three main reasons: the penny costs too much to make, citizens lose money by using the penny, and pennies are hardly used because they do not matter that much anymore.
A penny is worth one cent but they cost 2.4 cents to make which is the main cause of the Treasury Department losing money. “Because the penny costs more than a cent to produce, the Treasury loses more than $100 million per year on the coin’s production” (Fund). Many people believe the penny should stay because of its story and rich history. “Still, for many people, the penny’s sentimental value remains the same” (Shelton). This claim appeals to collectors and historians but one thing they fail to recognize is the fact that even though the coin would not be in circulation, there would still be pennies. The point is, if the penny costs more to make than it is actually worth, there is no point in making them.
Americans lose two cents on every transaction they make. Every year, due to this small loss, Americans lose $50 by using the penny. By eliminating the penny, instead of losing $50, they would lose $18.25. “If someone engages in two such transactions per day, over a year they would lose $18.25 compared with the person given their pennies” (Fund). Some think that if the penny were to be removed, companies would round prices up to make more money. “For instance, instead of paying $29.96 for something, you may have to pay $30” (Save the Penny- Save the Day!). This sounds reasonable but companies would likely drop their prices to attract customers or to see how well their product does. “For example, something currently worth 99 cents may well drop to 95 cents…” (The Cost of a Penny). If the penny were to stop being minted, Americans would lose less than half of what they normally lose.
The final point is the fact that pennies are not used that much anymore. People in favor of keeping the penny have said that the penny does not matter. “Pennies don’t really matter much, so I was happy to give them to someone who could use them” (Save the Penny- Save the Day). The letter that was just referenced explained that charities will suffer if the penny is cast out because penny drives bring in a lot of money. The charity argument is a fair argument however charities do not only rely on pennies for donations to keep afloat. So in short, pennies do not matter much to everyday life and are not needed by charities despite the penny drive efforts.
In conclusion, if the penny were to stop being minted, it would save money for America and the Treasury. It makes more sense to eliminate the penny from circulation rather than keep it for the sentiment. Be sure to tell your local representative your view on the penny.
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