“One, two, three, four. Here is your change,” the clerk says, counting out the pennies. But was that time really well-used? Why spend so much time counting pennies? For years pennies have been in danger of being canned. Too little value for the cost of production. I think that the US should stop producing pennies. Why? Because pennies cost to much to produce for what they are worth & waste time & money across the US. Pennies just aren’t worth it anymore. Pennies cost a lot. In fact, they cost more to produce than they are worth. “In the United States, the mint says, each copper & zinc coin cost 2.41 cents to produce & distribute,” Jeff Sommer says in his ‘Penny Wise, or 2.4 Cents Foolish’ article from 2012. Money adds up. Over
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Canada & New Zealand have stopped producing their lower denominations, & on US military bases pennies are no longer utilized. The answer lies in inflation, a major enemy of people worldwide. Many economists theorize that if the US were to retire to penny, a small but significant bout of inflation would occur. “A $2.01 cup of coffee should be rounded down to $2, while $2.03 should become $2.05, for example, but retailers in the real world might raises prices more than lowering them,” Jeffer Sommer writes. Other economists disagree, claiming that the economic effect would not be significant. All in all, the greater positive economic impact of eliminating the penny would outweigh the …show more content…
Counting pennies out in transactions takes times, & as they say, ‘time is money’. By removing the penny, Dr. Robert Whalpes thinks that the US would save money. Many retail businesses pay customers by the hour, & each 2.5 second segment of counting pennies mean that businesses have to pay workers more. “[These] seconds add up to an estimated $700 million in wages that businesses pay retail clerks to count pennies.” This potential impact could increase businesses’ profit margins, letting them lower costs. For the most part, removing the penny would positively impact retail
Canada & New Zealand have stopped producing their lower denominations, & on US military bases pennies are no longer utilized. The answer lies in inflation, a major enemy of people worldwide. Many economists theorize that if the US were to retire to penny, a small but significant bout of inflation would occur. “A $2.01 cup of coffee should be rounded down to $2, while $2.03 should become $2.05, for example, but retailers in the real world might raises prices more than lowering them,” Jeffer Sommer writes. Other economists disagree, claiming that the economic effect would not be significant. All in all, the greater positive economic impact of eliminating the penny would outweigh the …show more content…
Counting pennies out in transactions takes times, & as they say, ‘time is money’. By removing the penny, Dr. Robert Whalpes thinks that the US would save money. Many retail businesses pay customers by the hour, & each 2.5 second segment of counting pennies mean that businesses have to pay workers more. “[These] seconds add up to an estimated $700 million in wages that businesses pay retail clerks to count pennies.” This potential impact could increase businesses’ profit margins, letting them lower costs. For the most part, removing the penny would positively impact retail