What's Your Two Cents on One?

Hi. I’m Patty and I have a confession to make.

I am what you’d call an “exact change” kind of gal. 

​In fact, I’m quite partial to those little copper cuties we call pennies.  Well, that’s what we call them for the moment, anyway.

Now then, I address my atypical affection because of the recent controversy, or hullabaloo, if you will, over the U.S. Mint’s decision to eliminate my precious penny.

Not to be confused with “Penny, Penny, Penny” from television’s “The Big Bang Theory.” 

I digress.

Recently Emma Lawson, the Texas A&M University Division of Marketing and Communications Director, penned an intricate article on the pros and cons of obliterating my beloved little copper coin right out of existence. 

Her article was coined (as in “of a phrase”) “Costs and Benefits of Eliminating the Penny.”

Sorry, did I mention I love puns even more than I love pennies? I digress times two.

The piece detailed how the U.S. Mint confirmed that it will indeed stop production of the penny and has made its final order of penny blanks.

Sigh.

It’s a matter of public knowledge that President Donald Trump announced his intentions to cease production of the penny in February.

His argument includes the fact that it costs the United States two cents to create, well one, effectively. He deemed it “wasteful” on his “Truth Social” site. Then, in early May, U.S. Sen. Mike Lee, R-Utah, and Sen. Jeff Merkley, D-Ore., introduced official legislation to end production of the coin.

Hmm. Well, at least the right and the left agree on something, at least theoretically?

Raymond Robertson, director of the Mosbacher Institute for Trade, Economics and Public Policy at the Bush School of Government and Public Service at Texas A&M University, said the move to eliminate the penny has a variety of possible benefits for the government and consumers alike.

“For every penny that the United States government prints, we’re actually losing money. So, it’s a net cost to the federal government,” he said. “Another big issue, of course, is that we rely less and less on cash, as now we’re moving to a cashless society. People use credit cards and debit cards and so on. So, the penny is actually not being used as much.”

By the by, am I the only one simultaneously frightened, amused, perplexed and confused by the notion of a “cashless society?” Quite ominous sounding, no?

Moving on.

According to an Associated Press report, there are around 114 billion pennies in circulation in the United States. 

Sheesh!

Advocates of the penny point to its usefulness in charity campaigns and say the coin is more cost effective compared to the cost to print a nickel. 

Amen to that. I’m all about giving my spare change to charitable and other non-profit organizations, especially veterans' groups, so whenever presented with the option, I gleefully comply.

But back to the matter at hand, it seems putting out pennies might nick nickels, so to speak. 

“As we increase our reliance on nickels, because they’re going to be the smallest unit, it actually is going to increase costs for the government,” Robertson said. “So, it’s really not clear how much cost savings the government will realize by eliminating the penny.”

Robertson estimates creating a nickel can ultimately cost the United States 14 cents.

Those who advocate for the penny’s elimination argue that stopping the penny’s production could save the Treasury an immediate $56 million and make accounting easier for the U.S. economy. There are some case studies the U.S. government can look to for eliminating the penny. Robertson said Australia and New Zealand have already eliminated their smallest coins with no apparent negative economic impact.

“However, one thing that’s important about eliminating the penny is that the United States has not eliminated a coin in currency since the late 1800s, and back at that time, it took an act of Congress to do it,” he said. “This might be an example of the president testing the limits of presidential power relative to Congress.”

While Robertson predicts prices ending in .99 will be rounded up one cent, leading to higher costs for consumers, he also said it’s a good move for streamlining costs.

“Prices are hardly ever rounded down, so that means people are probably going to end up paying more when they go to the grocery store,” he said. 

To be fair, I do that all on my own when I go in for a single item and come out with three bags filled to the brim with everything but the kitchen sink. Some people over share. Me? I over buy.

Ah well, I for one will be holding onto several of these beloved little wonders for nostalgia’s sake. And heck, who knows? Maybe becoming collectors’ items will bring them back worthiness and then some?

Penny for your thoughts on that one; hee!

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