Consider these reasons why it’s time we put away our pennies for good.
9 “Centsible” Reasons to Get Rid of the Penny
Why We May Keep the Penny, Anyway
On the flip side, slightly more than half of Americans are emotionally attached to the penny. A poll by Yougov.com found that 51% of Americans were in favor of keeping it. More than a third (34%) would be disappointed if the government stopped making pennies, and another 9% would be downright angry. More than half take their pennies when offered as change. Only 39% leave them in the “give a penny, take a penny” dish offered by some retailers. Another poll found that 77% worry about the “rounding tax.” This is the idea that if the penny were eliminated, businesses would round up prices ending in $.99 to the nearest dollar. A 2001 study by Pennsylvania State University estimated that it could cost consumers about $600 million per year, but other studies found there would be no change. Many people have an emotional connection to the penny because of its history. It’s been in circulation since 1793, and it has borne Abraham Lincoln’s face since 1909.
History of the Penny in the United States
The penny first entered circulation in 1793 as a pure copper coin. In 1857, the U.S. Mint added nickel to the copper to cut cost, as the cost of copper was rising. In 1864, the Mint switched to tin and zinc (bronze) instead of nickel. In 1943, pennies were made of zinc-coated steel. Copper had become essential to the war effort during World War II. The Mint accidentally made 40 copper pennies, which have become highly sought-after collectibles. The record amount paid for a 1943 copper cent was $204,000 in 2019. In 1962, pennies were no longer made with tin. Since 1982, the penny has been made with 97.5% zinc and just 2.5% copper. At 2.500 grams, it weighs more than a dime (2.268 grams).
Should Other Coins Be Eliminated, Too?
Many of the reasons for eliminating the penny apply to other coins as well. Inflation has destroyed the value of nickels and dimes as well as pennies. And in some cases, they cost more than they are worth (nickels) and are money losers for the Mint (nickels, again). We could easily get rid of pennies, nickels, and dimes and be no more inconvenienced than the average person in 1913. Our pockets would be lighter by not having to make the additional change. Time spent at the register would be less without having to count out dimes, nickels, and pennies. And no one would have to wonder where to cash in coins.
