Target: David Schweikert, Chair of U.S. Joint Economic Committee
Goal: Alter penny production in ways that do not harm consumers.
“Penny-pinching,” “a penny saved is a penny earned”: America’s long-running coin, which bears the face of one of its most famous presidents, is an undeniable part of American culture and American consumerism. Ironically, it’s become one of the latest targets of the administration’s “cost-cutting” measures. A recently issued executive order called for the end of the penny, arguing it costs more to make than it’s worth. But in an America without pennies, would the cost outweigh the benefits?
Pennies do indeed cost on-average over three cents per penny to produce. The production value of the five-cent nickel stands at over 15 cents, more than three times its value. The metal composition of the penny contributes to most of this excessive cost, but bipartisan legislation to amend this composition has gone nowhere. Penny advocates are also quick to point out the possible repercussions of abolishing the one-cent piece. For one, it’s perhaps the most produced coin, and its loss would likely lead to the loss of jobs. For the consumer, the cost could be literal, since the end of the penny would necessitate either a mark-up or a mark-down in prices where a penny is needed to make change. Given current conditions, a mark-up would be far more probable than a mark-down. And lower-income consumers who often rely more on direct cash transactions would be most affected.
Sign the petition below to urge Congress to consider every alternative before it ditches this American mainstay.
PETITION LETTER:
Dear Chair Schweikert,
Pennies are not just useful for scratching a lottery ticket, measuring the tread on a tire, or physically fixing common household headaches. Their prominence in the American economy, in everything from charity drives to grocery store trips, is apparent in the sheer volume produced. If the penny were to disappear tomorrow, price adjustments (often for the worse for consumers) would be necessary on a wide range of products. Individuals reliant on cash transactions would suffer the most.
And if penny production was halted, the treasury would have to make up the difference by producing more nickels, which carry a 15-cent-per-piece price-tag. Such an outcome is hardly a harbinger of cost savings. Despite what any executive order may claim, alterations in penny production can only occur with an act of Congress.
Please consider the pros and especially the cons of producing the penny. Evaluate alternative to full stoppage, starting with the years-old bipartisan bill that advocated for a lower-cost and more environmentally friendly production model. The potential loss of this iconic coin is no mere penny ante.
Sincerely,
[Your Name Here]
Photo Credit: Jason Deines
