<![CDATA[KidSenz - News for kids - March]]>Sat, 05 Dec 2015 13:54:42 -0800Weebly<![CDATA[Will we lose our pennies?]]>Sun, 31 Mar 2013 16:04:03 GMThttp://www.kidsenz.com/march/we-may-lose-our-pennies
A penny is a one-cent coin equal to one hundredth of a dollar.  There is a huge debate these days about whether we should continue to have our pennies or not?

History of the pennies?
The one-cent coin, commonly known as the penny, was the first currency of any type authorized by the United States. For over two centuries, the penny design has symbolized the spirit of the nation, from Liberty to Lincoln. The design for the first one-cent coin was suggested by Benjamin Franklin. The word "penny" is derived from the original British coin of the same name. Over 300 billion one-cent coins, with 11 different designs, have been minted since 1787.

In 1909, Abraham Lincoln was the first historical figure to portray on the one-cent coin to commemorate his 100th birthday. The Lincoln penny was also the first U.S. cent to include the words "In God We Trust."  In 2009, to honor the 200th anniversary of Lincoln's birth, four penny designs depicting different aspects of the 16th President's life were also circulated. 

What is happening with our pennies ?
The value of the U.S. penny has been dropping for years. In 2006, it began to cost more than a penny to make a penny. Many countries have stopped using pennies. Canada ended its circulation of pennies on February 4,  2013. Some people strongly believe that we should continue using pennies while some feel we should discontinue manufacturing them. Both sides in the penny debate make some good points, and no decision has been made yet. 

Pro-Penny Arguments 
Prices will increase - If we eliminate the penny, everything will have to be rounded to the nickel. Merchants will probably round everything up in their favor, costing us more for everything we buy.

The poor will pay the most -They are most likely to make more frequent, smaller purchases, thus suffering the rounding up more often.

Charities need pennies - There are thousands of small charities that depend on penny drives to bring in donations. People think nothing of pouring out their old penny jars to support these drives, but they won't part with nickels so easily.

Nickels cost even more to make - If we eliminate the penny, we will need more nickels in circulation. Nickels cost 7.7 cents to make vs pennies cost 1.26cents.

Pennies are sentimental - Americans are traditionalists and the Lincoln Cent and a lot of sentimental value to them. 

Anti Penny Arguments 
Pennies are worthless - They don't buy anything, many people just throw them away, and nobody wants to use them, so let's just get rid of them!

Pennies waste time - The average American wastes 2.4 hours a year handling pennies, or waiting for people who handle them. eg waiting in line at the cashier digging in the wallet for pennies

Making pennies wastes taxpayer money - It costs the U.S. Mint 1.26 cents to make each 1 cent coin, meaning that taxpayers are losing 0.26 of a cent for each one of the 7.4 billion pennies the Mint produces each year.

Rounding-up prices wouldn't matter - The anti-penny folks think that we wouldn't pay more for each item we buy. Even if we shop 2 or 3 times a day, and even if the rounding goes against you 2 times out of 3, we're still only talking about a 3 or 4 cents per day at the most. Most people throw more than 4 cents' worth of pennies into the jar (or trash) each day anyway.

As of now the debate continues whether to discontinue manufacturing pennies or not. 

Gem Words 
Manufacturing : Make (something) on a large scale using machinery.
Debate: A formal discussion on a particular topic in a public meeting or legislative assembly, in which opposing arguments are put forward.
Taxpayer: A person who pays taxes. 
Symbolized: Be a symbol of. 
Worthless: Having no real value or use.

Written by Kanwal Raza