Penny's Fate Uncertain: Should We Keep or Scrap the Beloved Cent?

National One Cent Day, observed on April 1st, celebrates the penny despite its declining purchasing power. The U.S. has issued one-cent coins since 1787, but their production costs now exceed their value. Experts debate the merits of phasing out the penny, citing its inconvenience and burden on businesses, while collectors like Harry Jones advocate for its preservation.

Penny's Fate Hangs in the Balance: Should We Keep or Scrap the Beloved Cent?

As the United States grapples with the lingering effects of inflation, the humble penny has become the center of a heated debate. While its purchasing power has dwindled over the years, the penny remains a beloved symbol of American history and tradition. However, with the rise of digital payments and the increasing cost of production, some experts argue that it may be time to bid farewell to the one-cent coin.

A Historical Relic vs. an Economic Burden

The penny has a rich history in the United States, dating back to the establishment of the country's first mint in 1792. Designed by Benjamin Franklin, the original penny was made of pure copper and was significantly larger than its modern counterpart. Over the centuries, the coin's composition and design have undergone several revisions, but its basic form has remained largely unchanged.

For many collectors, such as Harry Jones, who has amassed an impressive collection over the past five decades, the penny holds immense sentimental value. "An S VDB, 1909-S VDB is at least a $500 dollar coin," Jones boasts, referring to one of his prized possessions. However, finding valuable pennies is a needle-in-a-haystack endeavor, and most pennies circulating today lack such monetary significance.

The Cost of Keeping the Penny

Despite its historical significance, the penny has become increasingly inconvenient and costly to produce. According to experts, it now costs more than one cent to manufacture each penny, raising concerns about its economic viability. "Recent estimates have showed that to actually make a penny, get the materials that's needed for the U.S. Mint to actually make a penny is about two and one-half cents," explains Michael Goldberg, an associate professor of economics at Case Western Reserve University.

Goldberg believes that the United States should follow the lead of other countries, such as Canada, Finland, and Australia, which have successfully removed pennies from circulation. "There are roadmaps to do this," he argues, pointing to the potential savings and streamlining of the country's pricing system by eliminating the need for one-cent increments.

Consumer Concerns and Symbolism

However, opponents of eliminating the penny, such as Jones, argue that it would disproportionately harm consumers. "Businesses would likely round prices up to the nearest nickel," they contend, meaning that consumers would end up paying more for everyday purchases.

Additionally, some see the penny as an enduring symbol of American history and thrift. "I just think we've had it so long we don't have to get rid of it," Jones insists. "I don't think it's breaking the country to keep 'em."

The debate over the penny's fate is likely to continue for some time, pitting those who value its historical and sentimental significance against those who prioritize economic efficiency. As the nation grapples with the challenges of the 21st century, the penny's future remains uncertain, serving as a poignant reminder of the enduring power of tradition and the relentless march of progress.