Why We Don’t Need Pennies: Money Essay Example

  • Category: Economics, Money,
  • Pages: 2
  • Words: 440
  • Published: 13 August 2020
  • Copied: 168

Today, I will be talking about, why we don’t need the pennies. I will be talking about why it is not worth the time producing these pennies, and how Canada made a smart decision and stopped producing them, and I'll also be talking about why some people think that the penny should stay and why they’re wrong.

The Canadian government stopped producing pennies, and they stopped spreading it through the banks on February 4, 2013. The Canadian government saw that there is no benefit of continuing to produce the pennies, and that's why Canada stopped producing pennies.

Nevertheless, You might be asking why are there no benefits of producing the penny? Well, the question can be answered in many ways, so let me explain. “According to the 2014 Annual Report from the U.S. Mint, it now costs about $0.017 – or 1.7 cents – to make one cent. “ that pretty expensive because if you produce $1,000,000 worth of pennies you would have to spend $1,700,000, to produce them. However, in 2011 it was even worse, making a single penny would cost 2.41 cents would mean if you produced a $1,000,000 worth of pennies you would have to spend $2,400,000 to produce them. So basically producing pennies is only going to lose you a lot of money.

Now you might be asking, well that does cost a lot to produce pennies, but America's GDP is 20 trillion so why would they care about money? Well it doesn't only affect America's GDP, but it affects the environment, pennies waste natural resource and because it is 3 percent copper and 97 percent zinc it is toxic to make. The process of making both of the metals into a penny release sulfur dioxide, and exposure to high levels of sulfur dioxide can be life-threatening to humans, and it can have a bad impact on the environment.

Now you might be saying, yes but at least they keep the price low and a lot of Americans like them, in fact, 51 percent of them voted to keep the penny. Well yeah that is true, but keep in mind Canada isn’t producing pennies and it actually helped them save money, and also to have good impacts on the environment, producing pennies in general will only lead to debt and pollution which the American government is fighting against.

So in the end, I really don’t think we should keep the penny, it costs a lot of money to produce, and it's hurting the environment, and really that don’t have a lot of value, if someone finds a penny on the floor most won’t even pick it up, and I don’t see anyone really using it to pay for items when they go shopping, so in general if America eliminate the penny it would have a lot of benefits, that America really needs.