“A penny saved is worthless”. This quote by Seamus is contradictory to the famous Benjamin Franklin quote, “A penny saved is a penny earned”. But Ben Franklin is not living in this day and age. Most of these pennies will end up at the bottoms of purses, in the streets or wish fountains or smashed into a flattened souvenir of an elongated moose or dolphin. While it may seem to some that ending the production of pennies is practically blasphemous, the truth is that the penny have lost its significance.
This copper coin is still significant to some people for its sentimental value. Many polls have been taken showing that Americans want to keep their dear pennies. One of these surveys, taken in 2012, by a group that was closely connected to the zinc industry (a very important element to a penny) indicated that more than two-thirds of surveyors voted to keep up penny production. One cannot disregard that it is still important to retailers, fast food restaurants and banks. Pennies are important to these industries, but the US can follow Canada’s lead by having pricing policies that round up or down to the nearest nickel.
“Right, left or center, all parties know that the country needs to save as much money as possible,” the group Retire the Penny says on its website. “And it’s impossible to save money when it’s being wasted.” It is estimated that in 2012, the cost to make a penny is actually about 2 cents, meaning that the Federal Government spends $58 million dollars to product 6 billion pennies
According to the Associated Press, along with Canada, other countries including Australia, Finland, New Zealand, Norway, the Netherlands and Sweden have all dropped their penny. These countries saw that it costs significantly more to produce a penny that its value. The most costly raw material in the American penny is zinc, which sells right now for $2003 per metric ton. Alternatives such as steel and aluminum can be used instead for a lower price and it would still function the same as zinc.
To clarify, ending production of the penny will not mean removing it from circulation. There are currently more than 140 billion pennies circulating around the world whose value as currency will continue even after its production ceases. (www.kokogiak.com)
Now, the Mint does not have the authority to call about an end to the production of the penny, the power lies in Congress. Many issues on both sides of the argument have kept the debate from coming up with a decision. Stopping the production of the penny will save money that can be used for other government programs. Now that people are more aware of government spending, it is important to be wise about how money is spent. To stop the production of pennies will be a wise move that will have many positive long-term effects.