Stop Making Cents: Penny Debate Reflection

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Questions and Answers

What issue does the author primarily discuss regarding the penny?

The aesthetic design of the penny.

The excessive minting of pennies that go unused. (correct)

The historical significance of the penny.

The cost of producing the penny.

What term does the author use to describe the ongoing issue with pennies?

The Penny Dilemma.

The Infinite Penny Cycle.

The Endless Coin Conundrum.

The Perpetual Penny Paradox. (correct)

According to the author, how many pennies does a conservative estimate suggest are in circulation?

480 billion pennies.

360 billion pennies.

120 billion pennies.

240 billion pennies. (correct)

What consequence does the author imply about minting pennies that go unused?

It necessitates the minting of more pennies. Signup and view all the answers

What standard of measurement does the author use to illustrate the number of pennies?

Value per person. Signup and view all the answers

What does the author suggest about the fate of many minted pennies since 1793?

They mysteriously disappear. Signup and view all the answers

Which characterizes the author's tone towards the issue of pennies?

Sarcastic and critical. Signup and view all the answers

How does the author describe the production history of the penny?

It is the most produced coin in history. Signup and view all the answers

What issue is the United States Mint facing with the circulation of pennies?

The overwhelming return of dormant pennies to circulation Signup and view all the answers

What concern did William E. Simon express regarding the production of pennies?

It would lead to an unsustainable spiral of production Signup and view all the answers

How much does $100 worth of pennies weigh?

55 pounds Signup and view all the answers

What happened to two-thirds of the pennies produced from 1969 to 1999?

They dropped out of circulation Signup and view all the answers

What was the estimated cost of producing one penny, according to the content?

3 cents Signup and view all the answers

What percentage of payments in America were settled with cash according to the 2022 Federal Reserve survey?

18 percent Signup and view all the answers

What analogy is used to describe the issue of circulating pennies?

Filling a leaking bucket with water Signup and view all the answers

According to Mint officials, what would happen if dormant pennies returned to circulation?

It would be unmanageable logistically Signup and view all the answers

Study Notes

The Perpetual Penny Paradox

The U.S. Mint produces pennies that primarily end up not being used for transactions.
An endless cycle of minting occurs as existing pennies are not spent, creating a constant need for replacements.
This paradox leads to an excess of pennies that contribute to a logistical problem for the country.

Overview of Pennies in Circulation

Approximately 240 billion pennies are estimated to be in the U.S., averaging around $7.24 for every individual.
There are enough pennies to give two to every person since the beginning of humanity, highlighting their vast accumulation.
Despite their production, many pennies are often unaccounted for, referred to in records as having “disappeared.”

Historical Context

The American penny is one of the most produced coins globally, with Lincoln's portrait being the most well-reproduced artwork in history.
As of now, 50% of U.S. circulating coins are worthless 1-cent pieces, with many stored away in consumer coin jars.

Challenges of Reintroducing Pennies

Acknowledgment from Mint officials indicates that if a significant number of dormant pennies were to enter circulation, it would lead to logistical chaos.
Technical challenges include space limitations in vaults and the heavy weight of coins, with $100 worth of pennies weighing over 55 pounds.

Government Reactions and Historical Warnings

Treasury Secretary William E. Simon warned Congress 48 years ago about the unsustainable minting of pennies.
He described the process as futile, likening it to trying to fix a leak in an underwater room with larger buckets.
Recommendations to eliminate the penny were made as early as 1980, citing significant out-of-circulation rates.

The Economic Viability of the Penny

Former U.S. Mint Director Philip Diehl observed that two-thirds of pennies minted from 1969 to 1999 had fallen out of circulation by the late 1990s.
In 2022, a Federal Reserve survey reported that cash transactions constituted only 18% of payments, raising questions about the relevance of coins.
It is estimated that producing one penny costs more than three cents, contributing to the argument for its elimination.

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Description

Explore your thoughts on Caity Weaver's opinion piece about abolishing the penny in America. Engage in close reading to analyze her arguments and provide evidence from the text. Reflect on the implications of this issue in society today.