Debate over the Penny in the United States
There is a debate over whether the penny should be eliminated in the United States. The debate is over many issues, including the cost of producing pennies, its value, and its impact on charitable donations. The following are some of the most important aspects of the penny debate. If you want to know more about this topic, continue reading! We'll cover the costs, benefits, and reasons to keep pennies in circulation. And of course, we'll look at the penny's impact on charitable donations.
Costs of producing a penny
The cost of producing a penny will fluctuate based on the value of commodities in the local currency. While it is possible to break down production costs into individual processes, the costs of producing a penny are unlikely to be less than one cent. The Mint is expected to be financially accountable and will not distribute pennies at a price below its cost. Therefore, there are possibilities for the Mint to make changes in nickel and copper production to reduce its costs.
The production costs of a penny have dropped over the past two years, but they remain well above their face value. The cost of producing a penny in 2014 was 1.7 cents, compared to two cents in 2011 and 2.4 cents in 2012. Despite these price increases, the cost to produce a penny still exceeds its transaction value. Therefore, many people fear that removing the penny would increase prices. However, this has not been confirmed by official government statistics.
Value of pennies
If you want to increase your collection of penny coins, it's essential to know the value of pennies. There are different types of pennies, each with its own unique value and history. The value of pennies varies based on the date and location. For example, a 1943 steel penny is worth about five cents, while a 1909 wheat penny is worth two to three cents. But the value of pennies varies as much as the condition of the coins.
There are a few steps in determining a penny's value. For example, the condition of the coin must be evaluated closely and compared to standards for the grade. The condition of a coin is another factor, with nicer, better preserved pennies fetching higher prices. To help you evaluate the condition of your pennies, the Penny Values series includes close-up images and descriptions. Additional videos help you identify subtle points.
Impact of pennies on charitable donations
Many organizations have a negative perception of pennies, but the value of these coins cannot be understated. While most Canadians view pennies as an inconvenience, they do generate hundreds of millions of dollars in charitable donations each year. It costs 1.6 Canadian cents to produce a one-cent coin, which means that eliminating pennies would save taxpayers approximately $11 million annually. As a result, it is important to consider how pennies affect charitable donations.
One recent study found that removing one-cent coins from circulation would reduce the number of donations made to charities. The study used data from Canada's seven largest convenience stores to determine the impact of the change. The study showed that rounding cash transactions to the nearest penny would increase charitable donations by as much as $3 per year. Further, this change would boost the Consumer Price Index, which would ultimately raise the amount of money available for charitable donations.
Whether to keep the penny in circulation
The debate over whether to keep the penny in circulation is one that can be viewed from two different perspectives. One side favors keeping the coin in circulation because of its history. Studies show that low-income individuals use cash more than higher-income individuals. And sixty percent of transactions under $10 are still conducted in cash. By eliminating the penny, the unbanked would be affected the most. However, other side opposes removing the penny. The debate has been fueled by recent studies showing public support for the penny.
While the public is strongly in favor of keeping the penny in circulation, there are opponents who believe rounding up would increase costs and damage the economy. However, economist Robert Whaples found that rounding up prices would actually benefit consumers. The majority of prices are already rounded up to the nearest nickel or dollar anyway. So, the choice is ultimately up to consumers. Just think about it! So, the penny is still worth keeping in circulation, but it's no longer the currency we use.
