Fighting the Penny in a Progressive Society

In America, an unforeseen debate has emerged among political disparities and civil issues– should the penny be eliminated? During its early stages, the coinage existed as a monumental currency. However, this has long changed, as the penny’s consequences now weigh down the American economy. History also supports that the removal of low denomination coins has benefited society. The half penny, which had more relative buying power than the penny today, was discontinued during the financial Panic of 1857. It seems inevitable that the penny will ultimately be abolished as well.

Still, there’s a backlash as sentimentalists of this coin share economic fears and have become emotionally attached. While these penny proponents believe that the coin is helpful, the penny not only significantly wastes consumers’ money and time, but has also become obsolete.

Time and money are valuable resources, and the penny costs consumers both. Imagine stopping at a toll on the highway. Fetching a few quarters is notably more efficient than trying to gather multiple pennies. A study by Jeff Gore, a 1999 MIT graduate, states that there is a total loss of 4 hours per person in a year for handling pennies at a transaction. What we discover is that time has a steep price. The nation is at a cost of $15 billion per year. That is a very hefty price for a coin that costs more to make than its actual worth.

Money is not only lost due to time, but pure carelessness as well. Many people simply abandon their pennies, leaving them here and there. The New York Times article, “Abolish the Penny,” points out that two-thirds of pennies drop out of circulation into piggy banks or to the bottom of couch cushions. These out of circulation pennies amount to a great loss of money. Essentially, the government is losing money that could rather be used for beneficial activities.

However, some fear that abolishing the penny could distort prices and even cause mild inflation. In commentary to another NYT article titled “Americans for Common Cents,” Mark Weller conveys that foreign governments have penny equivalents and have sought to avoid the systematic rounding of prices. However, a different perspective on Weller’s concern can be seen in Canada, where penny production ended in 2013. Transactions were rounded up to the nearest nickel, but this rounding did not cause any discernible rise in overall prices — the effect was small and transient.

It is clear that the penny’s costs are more than its worth. In addition to the penny’s unhelpful aid to transactions, it has also lost its value and purpose. During the debut of the penny, its service was crucial; however, goods were priced less at that time. To buy the item worth a penny in previous decades would be at least a dime in present time. The penny’s lack of value is evident in our market economy where the coin is rarely offered as payment anymore. It has become unavailing in a modernizing society with more credit and electronic payment methods.

The idle penny has also attracted attention among chief individuals in our government. In his article, “Ban the Penny,” Mark Lewis shares that U.S. Representative Jim Kolbe introduced an anti-penny bill. The change for abolishing the penny doesn’t just transpire from the voices of the common people, but it has also reached the elevation of Congress.

Still, people persist that keeping the penny is vital because it’s a portrayal of American heritage. In 2007, President Bush stated that the coin is an emblematic image of Abraham Lincoln’s preservation of America. If the penny truly represents honor, the American people have disgraced it: flinging it in the trash and losing it among the junk. This negligence does not mirror the respect our country has for Lincoln.

The penny amounts to little purpose nowadays and has lost its worth in a progressive society. While it may seem precious, no coin can have more value than time and money. The advantages of abolishing the coin serve the country much more than the diminishing honor it offers. It’s time America does what’s best for itself: abolish the penny.