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In the United States today there are many things that are open to debate. There are many ideas that officials have in order to improve this country, and some of these ideas are downright controversial. One idea which has been open to increasing debate in the present time would be the abolition of the penny.
A recent interview on CNBC Sqwauk Box (Embed Code: ) actually discussed this very issue. Philip Diehl, who is a former U.S. Mint Director and now the President of the U.S. Money Reserve was recently on the Sqawk Box news show and espoused a number of arguments for the abolishment of the penny.
To begin with, Mr. Diehl felt that the penny had outlived its usefulness and that it is “not needed anymore.” One of the main points that Diehl made about the US Reserve was that if an individual bends over and picks up a penny they are actually making less money per hour than minimum wage.
If you apply analysis to this statement, you would definitely find out that it is true. If an ordinary individual were to pick up a penny, they would probably need about ten seconds to do it. There are about 3600 seconds in an hour and dividing it by ten would leave you with 360. Thus, stopping to pick up a penny will only merit you about $3.60 an hour give or take.
The commentator questioned Diehl, saying that some feel taking the penny out of circulation would lead to inflation because some retailers would naturally raise their prices to the next cent over.
However, Diehl felt that it wouldn’t make good business sense for an establishment such as McDonald’s to upset customers by raising their prices to the next penny.
Finally, the argument was raised that the nickel is also an example is coinage that costs more to make than what it is worth acording to his Facebook page. However, Diehl’s counterargument was that the penny is “beyond hope” and that there are methods that can be taken in order to make the nickel more profitable to produce.
Overall, an interesting and educational debate that will probably continue for a number of years into the future.