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KyleT-Smith's Blog

23 Sep 2017

The Penny Debate

Coins | KyleT-Smith

The Penny Debate. Should the US Mint get rid of the Penny? Or should they keep making them as they become worth less and less? What are the pros of keeping the pennies? What are the Cons? Is it really worth spending 1.43 cents to make 1 cent?  In this essay, I will explain why the US mint should keep producing pennies, even when inflation makes them worth less and less.

One reason to keep the penny is the opinions of the United States population . According to a YouGov study, “51% of americans favor the penny, while just 34% think we should eliminate it.” This is really important. The poll shows that 51% of people favor the penny. So the penny mean something to them. They don’t what a piece of American history to go away. Another important piece of evidence is the 34% of people who want to get rid of it. So even if we put out a vote for whether or not to keep the penny, the penny would stay because it holds the majority (over 50%). This shows that the United States population does not want to get rid of the penny. If anything, that should be reason enough to keep it. More than 50% of the populations agrees with me, and wants to keep the penny!

Some people might say that making pennies are a bad idea because they cost more to make then it is worth. Sure, that is true, but they are missing a very important point. The United States Mint actually makes money from their coins, which includes the penny. Here’s an example. In a statement put out by the US Mint, they said “The Mint estimates that the quarter series will generate at least $6 billion in profit.” At least $6 billion! That means at the lowest possible amount of money they could make, it will be 6 billion dollars. That means their profit could be much higher than that. And this is just the State Quarter series! It doesn’t include the American the Beautiful Quarter Series (National Parks), the Lincoln Bicentennial in 2009, the Nickel Bicentennial in 2004 and 2005, and even the proof coins that come out every year (High quality coins that sell for a lot). That is a lot of profit that the US Mint makes. Losing a little bit of money in creating a piece of US history should not be a problem. Seeing as they will have profit of more than $6 billion, money should not be a problem!

Even if US Mint decides to get rid of the penny, that will not be a wise economical choice. According to the Spruce, “Nickels cost 7.7 cents to make, (2.7 cents over face value, as opposed to the 0.26 cents over face value to make a penny)” This is interesting. If 5 pennies make a nickel, and each penny cost 1.26 cents to make, that means 5 pennies cost 6.3 cents to make compared to the 7.7 cents to make a nickel. This means even though they are worth the same, 5 cents, the nickel is more expensive to make than five pennies. This shows that pennies are a better economic choice to make than to make nickels. Also, if they did get rid of pennies, than that means that the

PS: I Understand the real term is the Cent, but it felt appropriate to use penny for this article

Comments

coin collector

Level 4

I want to keep the penny but a new design

user_7180

Level 5

Keep the cent. Factor in the number of times a single cent is used in transactions over its 30+ years in circulation and that adds up well beyond the cost to manufacture.

Longstrider

Level 6

We will always have the penny, I believe. Americans love it even as we throw them in jars..Just my opinion. I could be wrong. Great,well thought out blog. Thanks!

Kepi

Level 6

I think the mint will keep producing the penny even if it looses money in this process...that's the government for you... ; )

CoinLady

Level 6

I wrote of this some time ago. I don't think the US will ever stop minting cents, just bec of tradition.

"SUN"

Level 6

You are right, the government makes money by making money. But, the penny and nickel part of the equation, the government loses money. Like a business, you have to look at all aspects of production. The Mint does have to find a way to cut the production costs of those two coins, if not, maybe do away with them.

Mike

Level 7

Glad you did. It's great. I'm one for keeping it. More copper goes into a nickel. This cent is Zink covered with copper. I believe all they have to do is cut down on them that's all. I could go on and on but your blog covers it. I enjoyed it. Thanks for sharing your work. Mike.

KyleT-Smith

Level 2

This was an School assignment that I did. Just wanted to post it

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