Money Penny The Penny's Economic Importance | The Penny's Economic Importance |
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The most obvious economic effect of removal of the penny would be the inflationary pressures it creates. Proposals to move to the nickel as the lowest denomination coin create public anxiety about high inflation. Over three-quarters of Americans (77%) are concerned merchants would raise prices without the penny. And they're probably right. Raymond Lombra, Ph.D., Professor of Economics at Penn State University, told a Congressional committee in 1990 that rounding cash sales up or down to the nearest nickel would cost consumers over $600 million annually.
Some proponents of penny elimination may say the coin's demise would not even be noticed. But removal of the cent is a concern, if only as a symbol of inflation. If prices rise, the Consumer Price Index (CPI) rises which, in turn, triggers further rises in many public and private sector costs which are tied formally or informally to the CPI. Approximately six in ten Americans (59%) think eliminating the penny would cause confusion when purchasing items. Imagine the inconvenience to shoppers at the cash register. Consumers, expecting merchants to round down rather than up, might also feel cheated. A system of rounding would be regressive and hurt those least able to afford it because they make more small cash purchases. And the current coinage mix should be maintained as long as it meets individual consumer preferences. Equivalent coins minted by the nations of Britain, Canada, and Japan are produced at a cost that exceeds their face value, yet they remain part of the coinage system because they meet commercial need and consumer preference. Other items of interest:
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How To Contact Us
Americans for Common Cents
1301 K Street NW
Suite 600, East Tower
Washington, D.C. 20005-3364
Phone (800) 561-7909
Fax (202) 408-6399
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Lincoln In His Own Words
If I were two-faced, would I be wearing this one?- Abraham Lincoln
News from the US Mint
New 2009 Penny Designs
Lincoln Bicentennial
In celebration of Abraham Lincoln's upcoming birthday bicentennial in 2009, the United States Mint plans to issue four new versions of the penny, to be released on a rotating basis.
More information about the Lincoln Bicentennial is available here.
Penny Fundraising
Many corporations, national charities, schools, and local philanthropies have realized the worth of the penny. Through the use of point-of-sale collections and competitive penny fundraisers, these groups have turned thousands of idle pennies into real dollars for everything from college scholarships to housing for the homeless. These fundraisers clearly demonstrate the true value of the penny.
More information is available here
Our Kids Making a Difference With Pennies
How To Conduct a Penny Fundraising Drive
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1301 K Street NW Suite 600, East Tower Washington, D.C. 20005-3364
Phone (800) 561-7909 | Fax (202) 408-6399
Americans for Common Cents is a broad based and informal coalition of charitable organizations, historians, coin collectors and those involved in penny production who share a common interest in the penny's history and continued circulation.
