Pennies are becoming more expensive. The price of zinc, the metal used to make the penny is souring. With increased demand for zinc in developing countries like China the United States faces a choice, find a new cheaper metal or get ride of the penny entirely. The Wall Street Journal covers the pros and cons of each choice, but from an efficiency standpoint I’m all for the eliminating President Lincoln from coinage.
The National Association of Convenience Stores and the Walgreens drugstore chain have estimated that handling pennies adds 2 to 2.5 seconds per cash transaction. Assume that the average citizen makes one such transaction every day, and so wastes (to be conservative) 730 seconds a year. The median worker earns just over $36,000 a year, or about 0.5 cents per second, so futzing with pennies costs him $3.65 annually.
It might take awhile to win this argument though, Americans for Common Cents (yes, this is an actual group) is a pro-penny lobby paid for by zinc industry. Perhaps Franklin’s famous quote could be changed to “a penny made is a penny earned” at least for the zinc industry.
does this mean that the $2.60 i counted out of my piggie bank (for real. it is an old school piggie bank where i dump change every day) will be worth more if i hang on to them…or does the gov’t going to force me to turn them over?
Thanks for the link to Americans for Common Cents. Though bought and paid for by the zinc industry, I am a full supporter of the group’s ideals. Namely, that pennies are indispensible. Not only are they 1/100th of a dollar, Tom Harkin, but they save more than they squander. My guess is the supposed $3.65 I lose annually is about five times less than the amount I will pay when prices are raised to the nearest nickel. Please note that prices will not be lowered to the lowest nickel. My 11-cent stick of gum? Oh, let’s make that 15 cents, my dear penniless friend! That Playstation 3 going for $356.72? Oh, let’s just make that $356.75! And, while we’re at it; what the hell are we doing with nickels anyway? They cost more than they’re really worth. Next thing you know, it’s like a Mexican Peso, circa 1985, and that 11-cent stick of gum is $25. I can’t wait! Just like that Utopian Dreamland I’ve always imagined, and actually played in Parker Brothers’ Monopoly! Please note that there’s not a coin to be had in Monopoly, and you usually end up homeless because you can’t afford rent at Baltic Ave. There’s a lesson for us all in Monopoly, and you and your penny-hating crusaders, Nemov, would be wise to heed it.
Club Soda, are you always so optimistic? ; )
Penny hording sounds like a good idea Jess.
[...] Soda and I have had our disagreements about abolishing the penny, but I think I found a currency issue we can agree on. Apparently, the United States loses a lot of [...]