As it becomes more and more common to not use cash for purchases in our increasingly digital world, many countries are debating the necessity of smaller change such as the penny.
While some places such as Canada have decided to stop using one-cent coins altogether, other countries such as the United Kingdom have continued to use them, citing the cultural and financial significance as their main motivator.
However, in the U.S. there is a different history surrounding the coin and making the debate more fierce than in many other places, including both patriotic and financial standpoints.
The Origin of the Penny
Pennies were the first coin introduced when U.S. currency was established. Because they represented the baseline of the currency in general (i.e. it is the smallest unit of U.S. currency), it quickly became a great tool for businesses to set whatever prices they wanted to outside of the given market value. Read more: US Money Reserve | Indeed and US Money Reserve President Discusses Elimination of Benny
The penny’s influence on the U.S. market also became apparent in advertising when the difference between $5.00 and $4.99 was established, forever changing the way consumers relate to the market.
However, though we associate the penny as being related to the 5th president Abraham Lincoln, this isn’t how it started—in fact, what is now known as the “Lincoln Penny” wasn’t created until 1909!
Due to the historical association, though, many advocates for the continued usage of the penny are focused on this patriotic element of wanting to honor Lincoln’s life and accomplishments.
Controversy Surrounding the Coin
The historical elements of the penny’s existence don’t necessarily mean that people want it to stay around, though.
It’s worth noting that there are actually many people who think that the U.S. would be better off discontinuing the penny, citing financial complications as their main reason for the change. This is because pennies cost twice as much to make as they are worth, decreasing their value as they are constructed.
Should the U.S. terminate the use of the copper penny all together? Hear what USMR President and former U.S. Mint Director Philip Diehl said about the UK’s decision to keep the copper coin as a form of currency.https://t.co/VcW1hMxrNl
About Philip Diehl: https://t.co/1pjGiH2jaV pic.twitter.com/9wfntXqeZW
— U.S. Money Reserve (@USMoneyReserve) May 11, 2019
This argument also has a diplomatic element to it, with many people asserting that the zinc pennies are made of add a significant amount to the trade deficit the U.S. has between itself and China, something that many want to decrease as much as possible.
As the leader of the U.S. Money Reserve, Philip N. Diehl believes it’s important to keep the public educated on the discourse surrounding pennies.
Though he doesn’t believe that pennies should or should not be removed from circulation, his experience working at the U.S. Department of Treasury has made him a man who wants to keep everybody informed about the currency many people use on a daily basis.
The U.S. Money Reserve provides consumers with the chance to understand and retain any type of U.S. currency before they sell out, whether they’re interested in one-cent coins or gold coins!
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