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The Penny Debate

posted Feb 4, 2013, 2:48 PM by   [ updated Feb 5, 2013, 12:55 PM by ]
People are debating on whether we
should keep producing pennies or not.

The value of pennies have been dropping a lot for the past few years. In 2006 it cost $0.02 to make a penny which is worth $0.01. Even though Canada has a similar system of money with America, they stopped making pennies on February 4. Now people in America are debating if America should keep producing pennies or not. If america will stop producing pennies, people would be rounding prices to the nearest dime. Why will they be rounding to the nearest dime instead of to the nearest nickel? Well, it's because like the penny, the cost of making nickels is $0.10 when nickels are only worth $0.05. On the other hand dimes cost $0.10 to make and dimes are also worth $0.10. 67% of the U.S. say that we should keep the penny because the prices on some products might go up if it wasn't for pennies. For example, a product costs $2.08. but if pennies didn't exist this amount would be rounded to $2.10 which is $0.02 more than the original amount with pennies. So what do you think, should they keep producing pennies or not?

Class Question: Do you think pennies should be banned in the U.S.?