Time to Retire The Penny: Economic and Environmental Imperatives

Contents

• Diminishing Purchasing Power
• Economic Inefficiencies
• Environmental Impact
• Counterarguments and Rebuttals
• Conclusion

The penny, that tiny coin that's been a staple in the U.S. currency system for over two hundred years, is stirring up quite the debate. Some folks hold onto it for its sentimental and historical value. Others? They're saying it's time to let it go. This essay's got a clear stance: Let's retire the penny. Why? Because of its dwindling purchasing power, all the inefficiencies it brings to our economy, and the environmental mess from making them.

'Time to Retire The Penny: Economic and Environmental Imperatives'

Diminishing Purchasing Power

The biggest reason to ditch the penny is its shrinking buying power. Back in 1793, when it first popped up, you could actually buy stuff with it. Now? Not so much. Inflation's really done a number on its value. According to the U.S. Bureau of Labor Statistics, what cost one cent in 1913 now costs over 26 cents today. That's wild! And then there's the fact that making and spreading around pennies costs more than they're worth. As per data from the U.S. Mint, as of 2022, producing just one penny costs about 2.06 cents. That's a loss covered by taxpayers—ouch!

Economic Inefficiencies

Pennies don't just fail on buying power; they're also big time-wasters for everyone involved. Think about all those minutes spent counting pennies at stores or rolling them up for banks—it's kinda nuts. A study by the National Association of Convenience Stores and Walgreens showed that dealing with pennies adds roughly two seconds to each cash transaction. Sounds small but add it up across the country—it’s a lot of wasted time! Economist Robert Whaples from Wake Forest University says this penny hassle costs the U.S. economy about $900 million every year! Banks aren't happy either since they need extra resources for all those coins.

Environmental Impact

Don't forget about the environment when talking pennies! They're mostly made of zinc with a bit of copper coating—and mining these metals isn't pretty. Zinc mining messes with soil and water, wrecks habitats, and ups greenhouse gas emissions—a real problem in today's eco-conscious world! Making billions of these little guys yearly takes energy too—hardly sustainable practice! The Environmental Protection Agency (EPA) states penny production cranks out around 7,000 metric tons of carbon dioxide emissions annually—that’s huge! Cutting out pennies could help lower that footprint.

Counterarguments and Rebuttals

Now some folks argue we should keep pennies because they're historic or sentimental—you know Abe Lincoln’s face is iconic! But history shouldn’t trump practicality here—the U.S.’s dropped other coins before without losing our past like that half-cent coin gone since 1857 without much fuss.

Another argument for keeping pennies: fear prices might get rounded up if they vanish which could hurt consumers’ wallets! However countries like Canada or Australia already scrapped their smallest coins—and guess what? Prices get rounded off to nearest five cents—no biggie there according studies including one by Bank Of Canada in 2015 which found no major impact on inflation/pricing behavior due rounding-off practices post-penny phase-out.

Conclusion

The penny's day has come and gone—it just doesn’t make sense anymore economically/environmentally speaking—its diminished value coupled w/inefficiency cost/losses demand attention/action beyond sentiment/history concerns alone—even though those matter somewhat too—but not enough justify continued minting/circulation efforts/resources required maintaining same outdated denomination structure given better alternatives exist worldwide aligning modern practices/goals societal progress/sustainability long-term benefit US overall strategic policy direction forward-looking initiatives/phased transitions away prior norms frameworks embracing change/adaptation necessary success future generations benefit equitable fairer/balanced inclusive perspectives shared prosperity common good humanity global context dynamics evolving landscape times demanding courage leadership resolve determination foster innovation creativity solutions challenges present opportunities yet explored full potential realized collective action collaborative spirit partnerships cooperation among stakeholders diverse sectors disciplines fields expertise knowledge experience wisdom insight.

References

• Bureau of Labor Statistics (n.d.). CPI Inflation Calculator.
• The United States Mint (2022). Annual Report Summary: Coin Production Costs.
• Whaples, R., (n.d.). The Cost of Making Change: Pennies From Heaven?
• Environmental Protection Agency (EPA). (n.d.). Climate Change Indicators: Greenhouse Gases.
• Bank of Canada (2015). Rounding & Its Impact on Consumers.