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Pennies are no longer a viable denomination to be used and, as such, need to be removed from circulation given the inherent cost behind their production and lack of sufficient usefulness.
Pennies are among the oldest types of currency currently in use within the United States and used to serve a purpose. However, through the gradual inflation of the price of goods and services, pennies are no longer considered as a necessary aspect of today’s monetary denominations that are in circulation. This is based not only on their lack of definable purpose as a medium of exchange but also through the perception of consumers that think that the penny is an ancient and unnecessary denomination that should be phased out. [Click Essay Writer to order your essay.
Main Idea # 1: Cost of Production
The U.S. Treasury department, on average, has to resupply the penny denomination by making 12 billion new pennies every single year, due to missing or damaged coins, at the cost of $.66 of a cent per piece to manufacture. The costs the American public $80 million a year for a monetary denomination that most people do not utilize and even consider to be a nuisance. In fact, when you consider the other associated costs production such as employee salaries and delivery fees, the price of production for a penny goes beyond $.66 of a cent.
From a business standpoint, it does not make sense to produce a product that few people are willing to use. [Need an essay writing service? Find help here.]
Main # 2: Proven Effectiveness of Alternative Methods
The country needs to adopt a new coin denomination system that discontinues the use of pennies. Other countries such as UK, France, and Germany have abandoned their use of defunct currency denominations resulting in millions of dollars per year saved instead of being wasted.
Main # 3: Lack of Resistance to Change
There is also less likely to be any resistance to this change from the average American consumer public support, with many even positively supporting the removal of pennies, due to their perceived uselessness in buying any product that is current on the market.
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All in all, the penny, as a medium of exchange in the U.S., is already obsolete and, as such, should be scrapped entirely.
Peer Response # 1
I do agree with your perspective, but you also need to consider a few things as well. The cost of producing pennies versus their actual value is based on an unsustainable model since a penny costs more to produce that it is worth. By removing this costly system, not only does this save money for the government but it enables it to allocate funds towards more useful ventures.
Simply put, this monetary denomination is no longer viable in the current economy and should be replaced to help reduce wasteful government spending. When it comes to the feasibility of such an action, stopping production can be done through congressional approval and halting the production of any new pennies through the U.S. Mint. Removing old dollar bills and coins by replacing them with new ones is done all the time, in this case, the removal will be permanent, and it is unlikely to have any ill-effect to the U.S. economy.
Peer Response # 2
You also need to consider that permanently removing a monetary denomination from circulation has been done in the past within the U.S. For example, the Silver Dollar, the Gold Dollar and other bills and coins have been removed when they were considered as being defunct and no longer feasible to create. While there will be a period of adjustment within the country, the benefits far outweigh the costs. There is also the fact that there will be high public approval for the action given the less than stellar thoughts many consumers have towards pennies.