Time to kill off the Penny?

[PeaceAngel]

Time to kill off the penny?

Now that the coins cost more to make than they’re worth, efforts have begun anew to kill off the cent -- and to save it, too.

By BusinessWeek

In May, the U.S. Mint informed Congress that the cost of making a penny and a nickel will soon exceed the actual value of each coin. Thanks to the high cost of materials that go into the making of the coins -- zinc, copper and nickel -- the Mint estimates that by the end of the fiscal year, the cost of producing one penny will come to around 1.23 cents, and the cost of making a nickel will be 5.73 cents.

The news revived efforts to take the penny out of circulation. Rep. Jim Kolbe, R- Ariz., has begun drafting a bill to modernize America's currency system. According to Kolbe's press secretary, Korenna Cline, the bill would most likely include a slow phasing out of the penny, create a reasonable rounding system, increase the production and circulation of the $2 bill as well as the Sacajawea (often called the golden) dollar, and possibly change the composition of coins to include less-expensive metals.

In 2001, a similar bill that called for the abolishment of the penny, also drafted by Kolbe, never made it out of committee.

Honestly, Abe

The penny does have its supporters. Mark Weller is executive director of Americans for Common Cents, a nonprofit organization that was founded in the '90s when similar moves to abolish the penny were launched. His organization's goal is to keep Congress and the public updated on news and information about the penny. Weller says that polls conducted by ABCNews, USA Today/Gallup and Coinstar all show that the majority of Americans want to keep the penny around.

Weller's outfit has joined with Virgin Mobile USA to start a "Save the Penny" campaign that is meant to show Congress the worth of a penny. As part of a promotion for their 1-cent text messages, Virgin Mobile is sending trucks around the United States this summer to collect pennies to benefit youth charities. The tour also is picking up signatures for their save-the-penny petition along the way.

The penny may have time on its side. In December 2005, President Bush signed into law a bill that mandated that the penny commemorate Abraham Lincoln's 200th birthday with a redesign. The date of the penny's redesign: 2009.

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Source: http://articles.moneycentral.msn.com/News/...y.aspx?GT1=8376

What do you guys think about this?

[Mike]

it would make things harder i think, unless they made everything cost straight numbers and not 9.95 and stuff like that.

i think that would make the world easier

[PeaceAngel]

Yeah I agree, if they change the prices of things so you don't have to use pennies, then it would be a good idea. But then they'd have to change the percentage of sales tax too so it would be an even number as well.

[Vipa]

Stores should just round up or down to the nearest nickel.

Like, If I buy something that comes out to 19.02, just drop the 2 cents. Past 19.03 0r .04, round up and charge an extra 1/2 cents. they'll make back the difference like that.

This of course if they do get rid of the penny.

Edited July 18, 2006 by Vipa

[mfuqua23]

I've been saving pennies, so I hope I cash all of them in before this goes down in full.

[sonic1988]

it would be cool if they got rid of the penny in some way, but its impractical.

Something kind of ironic about this thread is that copper is actually rising in its worth on the black market. Its actually around Gold and Silver prices!!

no joke: http://www.boston.com/news/local/maine/art..._copper_thefts/

[Big Ben]

Well, all they would have to do is find a new material to make the penny. I'm sure a lot of people would want Abe on it, but the penny didn't always have him on it. I have a few pennies from the late 1800's and early 1900's.