Why do we still lose money to make the penny? Why isn’t there a resolution to end the penny right now?
With the Fed’s “quantitative easing” policy of printing billions of dollars out of thin air every month, the penny is worthless. We’re losing money to coin it, so why are we still doing it?
The arguments against the penny have been made for years. This is from the New York Times of earlier this year:
Please, Finally, End the Penny
David Owen, a staff writer for The New Yorker, is the author of “Green Metropolis” and “The Conundrum.”
APRIL 4, 2012
Canada is eliminating pennies, and good riddance. The United States should do the same.
Pennies have virtually no buying power, yet they cost a lot to make, distribute and use, and many consumers simply throw them away. (Picking up a penny from a sidewalk and putting it in your pocket pays less than the Federal minimum wage, if you take more than 4.9 seconds to do it.) The U.S. Army stopped using pennies on its bases in Europe in 1980, to spare itself the cost of shipping them overseas. In 1996, the Government Accounting Office determined that most of the millions of shiny new pennies that leave the U. S. Mint each year simply disappear. What’s the point?
There is a Wikipedia page, Penny debate in the United States. See this:
Production at a loss — As of February 2011, it costs about 2.4 cents to mint a penny. In 2007, even the price of the raw materials it is made of exceeded the face value, so there was a risk that coins were illegally melted down for raw materials.
So if we keep making worthless pennies, maybe we should expect (even though it’s illegal) that people will buy them up and melt them down and make easy money? What country spends 2.4 cents to make a penny?
This is also symbolic. Maybe when the penny is gone forever, people will finally realize how worthless our currency has become and is soon to become.
Is there even a single good argument in defense to keep the penny and lose money making it?
Eliminating the penny will help business. See Penny Free Biz:
News Flash.. Canada to follow Australia, New Zealand, Norway, Switzerland and the United Kingdom. They are discontinuing the use of their penny… The United States has to be next. (MORE 1, 2) March 2012
Spend four minutes and watch the YouTube video Death to Pennies. It states the argument very well.
All that’s left is to name the bill. The “Obama and Bernanke killed our Lincoln penny” bill needs a better name, but that’s why legislators have staff.
A penny for your thoughts, RedState readers.