Eliminate the penny?

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(CNN) -- If you've ever looked closely at a newly minted penny, you've probably been struck by its sheer beauty. Abraham Lincoln's bearded, chiseled, copper face shines forth beneath the proclamation of "In God We Trust" and beside the quintessential American motto, "Liberty."

Americans revere the penny, as it encapsulates a history lesson -- Lincoln brought freedom to so many -- and a civics lesson all in one.

But increasingly, Americans have stopped using the penny, as we turn toward electronic payments and away from cash. Sadly, inevitably, like so many other beautiful, venerated historical objects, it appears that the penny now belongs in a museum.

Earlier this week, President Barack Obama asked Congress for permission to change the mix of metal that goes into making pennies and nickels. He based this recommendation because it costs taxpayers about 2.4 cents to make each penny and 11.2 cents to make each nickel.

In fact, the costs of using such coins are even higher. Poor Richard, aka Benjamin Franklin, recognized that "time is money." How much is our time worth?

The average American earns a little more than one penny for every two seconds of work. Unfortunately, when there's a penny involved in the transaction, it takes a couple extra seconds to fumble around for the coin and complete the purchase. Thus, for many people, time is more valuable than this money, and increasingly we throw away pennies, lose them, don't bother to collect them to return to the store or let them pile up in jars.

Stores pay out more pennies than they receive, so the order goes down the line to make more pennies, which are often lost and ignored -- repeating this vicious cycle.

Unfortunately, the U.S. Mint won't find a miracle metal that will make pennies worthwhile.

The bottom line is that even if pennies could be created out of thin air, the cost of our time would outweigh the gains from using the penny.

For nickels, the math works out better, so I'll second the president's call to begin making nickels out of less costly metal, rather than consigning them to the history books.

[pwrhamr]

"Obama: He based this recommendation because it costs taxpayers about 2.4 cents to make each penny and 11.2 cents to make each nickel."

Using that logic......... Keep the penny. Get rid of the warplane.

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Canada Ditches Its Penny
BY LOUIS PEITZMAN MAR 31, 2012 1:46 PM



Canada will say goodbye to the penny this fall. As Finance Minister Jim Flaherty explained, "The penny is a currency without any currency in Canada, and it costs us 1.5 cents to produce a penny."

Of course, Canada isn't the only country to abandon the penny.

A government statement said New Zealand, Australia, the Netherlands, Norway, Finland, Sweden and others "have made smooth transitions to a penny-free economy."

So why does the U.S. still use pennies? Well, that's complicated. Back when he was a presidential candidate, Obama did say, "We have been trying to get rid of the penny for some time." But now the administration is simply looking into cheaper ways to produce the penny, which is currently made of zinc.

Opponents of getting rid of the American penny include the zinc lobby (well, clearly) and advocacy group Americans for Common Cents. The group explains its pro-penny position on its website.

Eliminating the penny is a losing proposition because it will result in rounding to the nearest nickel and higher prices for America's working families. This increased cost to consumers will be felt in everything from the grocery store to the gas pump. Pennies add up to millions of dollars every year for charities across the country. Simply put, the penny plays an important role in our everyday lives and in our nation's economy.

Perhaps the penny really is essential. But if Canada's no-penny economy succeeds, it might be a topic worth revisiting.

http://gawker.com/5898047/canada-ditches-its-penny