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Why We Should Get Rid of Pennies

Why We Should Get Rid of Pennies. By Andrew Welke. Reasons. Cost more to make Waste your time They don’t work as money They get less valuable as inflation increases. History. The penny was made in 1972 Made of 100% pure copper at the time It was worth what is now a nickel today

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Why We Should Get Rid of Pennies

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  1. Why We Should Get Rid of Pennies By Andrew Welke

  2. Reasons • Cost more to make • Waste your time • They don’t work as money • They get less valuable as inflation increases.

  3. History • The penny was made in 1972 • Made of 100% pure copper at the time • It was worth what is now a nickel today • As time went on… • The value of copper went up • Inflation lowered the value of money • Which forced the mint to make the penny 2.5% copper and 97.5% zinc

  4. Impact • The U.S makes 4 billion pennies each year. • Each penny costs about 1.4 cents to make each penny • In 2011 it cost the FY $60,200 dollars • So a lot of our hard earned wages goes to subsidizing the penny. • It would be better to use a different form of material like steel, plastic or lint

  5. The purpose of pennies • You don’t want to overpay for anything. • Money exists to facilitate the goods and exchange of services • YOU CAN’T DO THAT WITH PENNIES!

  6. But there is 1 machine

  7. But there is 1 machine

  8. But there is 1 machine • IT TAKES 10% AWAY OF THE MONEY YOU ALREADY HAD AND GIVES BACK NOTHING IN RETURN!

  9. They Are a Deadweight to the Economy!

  10. Pennies are worth less than nothing • There is an idea called Opportunity Cost. • Basically, if you are doing something, you could be doing something else, like earning money.

  11. Pennies are worth less than nothing • There is an idea called Opportunity Cost. • Basically, if you are doing something, you could be doing something else, like earning money. • It is estimated that Americans lose a billion dollars of money just fiddling with pennies • Especially if you get exact change in the checkout line.

  12. Visualize • You go to the bank with 2,000 pennies ($20 weighing eleven pounds)

  13. Visualize • You go to the bank with 2,000 pennies ($20 weighing eleven pounds) • You say “I have these pennies here, can I get 24 dollars in return?” AND THEY SAY YES!

  14. Visualize • You go to the bank with 2,000 pennies ($20 weighing eleven pounds) • You say “I have these pennies here, can I get 24 dollars in return?” AND THEY SAY YES! • THAT IS WHAT IS HAPPENING AT THE U.S. MINT!

  15. WHY DO WE STILL HAVE THESE!?

  16. WHY DO WE STILL HAVE THESE!? • We are sentimentalists

  17. WHY DO WE STILL HAVE THESE!? • We are sentimentalists • People like the penny • People like Abraham Lincoln (He is the only one facing right.)

  18. WHY DO WE STILL HAVE THESE!? • We are sentimentalists • People like the penny • People like Abraham Lincoln (He is the only one facing right.) • If Lincoln was alive today…

  19. WHY DO WE STILL HAVE THESE!? • We are sentimentalists • People like the penny • People like Abraham Lincoln (He is the only one facing right.) • If Lincoln was alive today… • His face will still be on the $5 bill!

  20. WHY DO WE STILL HAVE THESE!? • We are sentimentalists • People like the penny • People like Abraham Lincoln (He is the only one facing right.) • If Lincoln was alive today… • His face will still be on the $5 bill! • People are afraid prices will rise and charitable donations will drop • The only company that benefits is a zinc company in Tennessee called Jardon Zinc Products

  21. The Solution • Get rid of the penny and round to the nearest 5 cent for cash transactions.

  22. Rounding 10 9 8 7 6 5 4 3 2 1

  23. Rounding 10 9 8 7 6 5 4 3 2 1

  24. Rounding 10 9 8 7 6 5 4 3 2 1

  25. Rounding 10 9 8 7 6 5 4 3 2 1

  26. Rounding 10 9 8 7 6 5 4 3 2 1

  27. Rounding 10 9 8 7 6 5 4 3 2 1

  28. Drawback • Cheaters

  29. The Solution • Get rid of the penny and round to the nearest 5 cent for cash transactions. • People are afraid prices will rise and charitable donations will drop

  30. The Solution • Get rid of the penny and round to the nearest 5 cent for cash transactions. • People are afraid prices will rise and charitable donations will drop • Many countries have done this and there has been no change in their economy. • Canada, New Zealand, Australia, Finland, Netherlands • No prices rose or charitable donations dropped

  31. Experience • We have gone through this process before. • The U.S. mint discontinued the half-cent in 1857 because it was worth too little • No prices rose • (But It had greater buying power than today's dime!)

  32. Is it Unpatriotic? • Not exactly, our U.S. military in oversea bases abolished the penny and rounded to the nearest 5 cents.

  33. This is not a political issue

  34. This is not a political issue It is a rational issue

  35. References • Images • http://www.kungfuquip.com/wp-content/uploads/2011/02/800622_lg.jpg • http://larry5154.files.wordpress.com/2011/07/vending-machine.jpg • http://getentrepreneurial.com/wp-content/uploads/2012/04/laundromat-dryers.jpg. • http://upload.wikimedia.org/wikipedia/commons/0/0c/2010_cent_obverse.png • Info • http://www.snopes.com/business/money/pennycost.asp • http://www.youtube.com/watch?v=y5UT04p5f7U&list=PLqs5ohhass_QZtSkX06DmWOaEaadwmw_D&index=10&feature=plcp • http://www.youtube.com/watch?v=77C47XYm_3c&feature=related • http://en.wikipedia.org/wiki/Half_cent_(United_States_coin) • http://en.wikipedia.org/wiki/Penny

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