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President Barack Obama finally broke his silence on an issue of national importance Friday – he thinks it’s time to retire the penny.
The possible extinction of the one-cent coin was a featured economic question in a Google+ Hangout with the Commander in Chief last week as John Green, the co-creator of a popular YouTube channel, applied a little presidential peer pressure.
“Australia, Canada, New Zealand, many other countries have gotten rid of their pennies,” Green said. “Why haven’t we done it?”
“I gotta tell you, John, I don’t know,” Obama responded, adding, “Anytime we’re spending money on something people don’t actually use, that’s an example of things we should probably change.”
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But why should anyone care? They’re pennies. Aren’t there more valuable things to worry about?
First, pennies actually cost more to make than they’re worth. In 2012, every penny cost 2.41 cents to make – more than twice their face value.
And as zinc and copper – materials used in minting the penny – have become costlier due, in part, to manufacturing shifts in China, which are likely to raise costs further.
Granted, the total cost of minting pennies was only $58 million last year – less than one-tenth of a percent of total federal spending in 2012 – but groups like Citizens to Retire the U.S. Penny have long been making the economic case for getting rid of the penny (plus, the group adds, fishing for pennies adds about 2 seconds to each cash transaction per day).
And the U.S. military has already decided they’re essentially useless; all Army and Air Force Exchange Service stores on bases round all cash purchases up or down to the nearest nickel.
With both parties looking for ways to cut government spending, it seems as though cutting penny production could be a relatively painless, if insignificant, place to start. But in the Google+ Hangout, Obama ceded that Washington has bigger fiscal fish to fry.
“The penny is an example of something that I need legislation for,” he said. “And, frankly, given all of the big issues that we have to deal with day-in/day-out, a lot of times it just doesn't -- you know, we're not able to get to it.”
There have actually been efforts to pass penny-banning legislation. Back in 2001, then-Rep. Jim Kolbe (R-AZ) introduced the “Legal Tender Modernization Act,” which would have made pennies obsolete by requiring retailers to round up or down to the nearest nickel on cash purchases.
That bill failed, and Kolbe’s second attempt in 2006, the “Currency Overhaul for an Industrious Nation (COIN) Act,” after zinc costs nearly doubled, met a similar fate.
But the president doesn’t need Congress to explore other, cheaper alternatives to zinc – the main metal in pennies. In fact, the administration’s 2013 budget encourages the Treasury to “explore, analyze, and approve new, less-expensive metals for all circulating coins like aluminum, iron and lead.”
It wouldn’t be the first time Abe Lincoln’s coin got a makeover. Back in 1982, the penny changed from 95 percent copper and 5 percent zinc to 97.5 percent zinc and 2.5 percent copper.
(And lest so-called “penny hoarders” try to melt that valuable pre-1982 copper down, the Mint in 2006 prohibited the melting of pennies and nickels. It also made it a crime to carry more than $5 in one and five-cent coins out of the country).
Changes to the composition of pennies do have Congressional champions: Ohio Rep. Steve Stivers (R) introduced the “Cents and Sensibility Act” in December 2011, which would mandate that pennies were out of American steel (much of which comes from the Buckeye State) and dipped in copper.
But these efforts will be met with some serious resistance from the zinc lobby (yes, there is one). The company Jarden Zinc, which creates “metal and zinc coinage,” according to its website, paid lobbyist Mark Weller $340,000 in 2012 to discuss issues related to “minting/money/gold standard” with members of Congress and the Mint, according to the Center for Responsive Politics.
Weller also represents the pro-penny group Americans for Common Cents, whose website warns of the risk of inflation that eliminating the penny would bring, and whose headquarters are on K Street, known for its many D.C. lobbyist offices.
“Americans for Common Cents aims to inform and educate policymakers, consumers, and the media about the penny’s economic, cultural, and historical significance,” the group’s website reads.
The political power of the penny is likely another reason Obama hasn’t acted on getting rid of it. As far back as 2008, when he was still a candidate, the “penny lobby” appeared to mystify Obama.
Asked about it at a town hall in Pennsylvania, he said, “We have been trying to eliminate the penny for quite some time -- it always comes back,” joking, “I need to find out who is lobbying to keep the penny.”
This story was originally published on Tue Feb 19, 2013 2:51 PM EST
Leave a Comment:
he will get rid of the penny just like he will get rid of our government
Can Obama manage elimination of one-cent coin?
Why Not??? He's already eliminated Jobs.....
Bankrupting this country, war on the middle class, undermining the Constitution and everything this nation was founded upon.
For you air heads out there, instead of prices rising by a cent or two it would then go up a nickle or more. State taxes will also go up to match the nickle. Gas prices would rise by a nickle rather than a penny, federal and state gas taxes will have to be raised to the nearest nickle, surely they won't go down.. Wake up you fools, all Obama wants to do is take everyones money and have you count on the government welfare state. Just remember, no one will reduce to round-off to the nearest nickle, they will raise it to the next nickle. Interest rates will rise,all bills will be rounded-off to the nearest nickle. Think about it and the overall impact it will have on your money. Remember, pennies saved turn into dollars.
@Ron. You are correct. You also spell like I do, it's nickel. I miss-spell it everytime.
hes just paving the way for a cashless society
Obama is LOATHED by most of you out there, Gee I wonder why all the hatred for this President? When the Bush administration enacted the PATRIOT Act I didn't read the same howling, when Torture was legalized nothing was said, they have been talking for 20 years about getting rid of the penny and everyone agreed but now that Obama brings it up it's a terrible idea. I don't know what to make of you guys, absolutely ANYTHING Obama does is going to get you riled up.
Face it guy's, no matter how you slice it it's going to be a long 4 years for you. Now you know how I felt with 8 years of that Dingbat Bush who got us into 2 senseless wars.
You got to be kidding me. The Bush haters where on every single day, you can't say that of the current news media, they are so far up Obama's you know what. Look, I believe giving credit, where credit is due, even if I did not vote for him, I actually agree with the drone attacks, one of the few things I actually agree with. And this current administration used the water boarding to find Osama, I ask you is it better for a couple of people to be tortured or for many Americans to die ? As far as the Bush administration, you must not have a job HarleMan, go on the web statistics and look at the unemployment rate during his administration, compare it to the Obama administration.
First of all, what a pathetically reported article filled with your typical internet authored mis-information. Such as the opening paragraph that cites the $58 million dollars as being 1/10th of a % of the federal budget. Writer can't even do the math right. And with no proofing, no editorial staff these "news" agencies are literally dumbing down America, a vastly costlier problem than the cost of the penny. And as per the headline, who gives a crap what the "military" thinks about the value of the penny anyway. What phenomenally stupid first world country we've become. BTW, after the penny goes, so will cash, and then the GOVGOONS will control everything and everyone kowtowing to the great Satan. Don't think so? These goons are funded by your limitless tax "donations". Representative government my fat ass.
and then we cemented it by voting him right back in.
Kill the penny but completely ignore the Benghazi Failure and the terrorists that perpetrated the murders. What happened to the promise of bringing these radicals to justice. Looks like kiling the penny and golfing with Tiger has more priority while blaming the GOP for the sequester that was his idea. What an incompetent fraud and anti-American.
HaZaaa. Lets get rid of the penny. Ive been saying this for years( to myself). I hate the penny.
So easy to do. Just don't receive or pay with pennies. Why should we do what YOU want to do ?
This has already been done in the Netherlands. The shop keepers are supposed to either round it up or down, but what really happens is that they price every item to round up. For example 1.33 becomes 1.35. Now that is not so bad on one item only, but imagine going to your grocery store buying a lot of items. According to my sister in Holland, she looses quiet a lot this way and she is very good with math and money. If you combine that with the Euro conversion, many people are complaining about having a lower life style. This president should instead by focusing on stimulating the economy if he can.
He already is. It is just the US economy will have to wait its turn.
This may be one of the stupidest things that I ever heard of, to get rid of the penny. So tell me this, if something is 96, 97, 98 or 99 cents, how are we suppose to make change!!!!! Are we just gonna round up to the 5 cent mark. Just another stupid suggestion but a non thinking person.
This maybe one of the dumbest moves anyone person, president could do, is too get rid of the penny!!!! So if something is 96-99 cents, what are we suppose to do, just round up to the nearest 5 cents. Just another brilliant idea from someone I did not vote for!!!!
Well, hell, if we're tossing out worthless, shiny metallic-colored stuff, why not throw Boehner in there?
This could be Obama's biggest accomplishment, his defining moment, his lasting legacy - getting rid of the penny.
It is a good idea to cut spending in places that will benefit the AMERICAN people,but itis not a good idea to cut spending in places or increase spending in places to try to BUY PEACE from other nations.$?????????????????? has been sent to other nations that would have benefited the AMERICAN people. IF we had honest leaders who would not let the LOVE OF MONEY influence thrir decisions, the AMERICAN people would BENEFIT.
I think Obama has done more damage to this country than the penny. Anyone agree?
So the Dollar is soon to be the new Dime?
considering a large majority of his base operates off of ebt cards I can see why he could get away with this but kids of people who work for a living still like the penny, and really if you get rid of the penny then why not the nickel and dime and for that matter the dollar bill as since he took office it is only worth a penny anyway, one thing we can all agree on and that is obama your welfare momma is an idiot and will not be missed when fate and karma take his sorry arse from this world, and I will be the first to take a huge dump on his grave just above where his face is as a sign of the respect the sheetbag has earned. Happy trails sheetbag hope you die real soon.
If he gets rid of the penny there will be nothing left to pay us working people with.
Printing pennies cost the US government millions of dollars; no one wants to accept pennies and I include banks in that statement. Yes, stop production of the penny; in fact, stop wasting tax payer funds to print all forms of metal and paper currency; the only form of acceptable currency should be a bank debit card. I cannot even think of anything that can be purchased for a penny, a nickle, or a dime; and for those who think they are getting a bargin when they buy something for $29.99 instead of $30 is crazy. Ditch the penny and get honest with merchandise pricing.
Putting everything on a debit and credit card puts your money at risk by hackers or anyone that has access to your information or can still your identity. It also poses a risk of your information disappearing entirely in the event from an EMP pulse from our sun during sunspot activity or from man-made sources or from a glitch in computer programing. After all there are assets that are removed from bank accounts every year for reasons as small as no current activity in the account.
I think Obama is more damaging to our country than the penny. Anyone agree?
Here lies the problem with eliminating the penny. While government will save money in its production cost every business and corporation will make more money by rounding up prices and rounding down payroll to the nearest nickle. This will end up being a boon to government, business and corporate profits and savings while costing the worker more in out of pocket expenses.
A Penny saved is a Penny earned: that is exactly why I opted out of getting the monogrammed floor mats for the shiny new Ferrari I purchased this week.
key facts about obama your welfare momma and the source
1. Biggest idiot since jimmy carter (encyclopedia britannica)
2. Most racits moron on the planet (ebony magazine)
3. Most arrogant arse in the world (his mother)
4.Smallest penis with no balls (michelle obama and white house doctor)
5. Most incapable leader in the free world (democratic journal)
6. Pied Pieper of a band of idiots and trolls (msnbc, nbc, abc, cnn)
7. Welfare king (middles class tax payers)
8. Brain Dead ( C A T scan)
barak insane obama is your welfare momma, when his term is up please turn in your phones and ebt cards and get back to work recess will officially be over
You do understand that "welfare" in the US is a total joke right? You do understand that Obama has not put anything forward to make it anything less then an ongoing joke right?
Take Canada. You can go on welfare for life, where as unless you are disabled in the US you have a limit.
In Canada, there is family allowance open to just about anyone with a kid that gives 100s of dollars a month until the child reaches 18. family allowance is not welfare but it is in the same category by most American standards.
It is laughable when I hear people talking about America having welfare. We don't have welfare, we have assistance that equals just enough assistance to make our society feel like it is not letting people starve in the streets.
The brainwash of welfare hate in the US is truly amazing.
just take your ebt card and go gamble and buy booze and cigies and shut your dorito hole. don't say you can't as when it comes to screwing people over you losers always find a way wether it is exchanging legal purchases for illegal ones or trading with other losers such as yourself you always find a way to get what you are not entitled to.
There is no Ebt card here.lol
come on over obama will gladly pay for you as well on the backs of the middle class
Never have taken anything from the US gov or any gov and I am not about to start. However, I also do not hate welfare. It has it's uses and needs to be there for ALL who might find a need for it. The attitude that everyone on welfare is lazy is short sighted and indeed indicative of narrow thought.
Though, I have to say that I understand that society as a whole has become quite narrow minded, only seeing the individual with responsibilities to society and society having no responsibility to individuals. That concept is exactly opposite of how societies formed in the first place.
Keep in mind that every time you pull your car out on to a PUBLIC street you are now taking advantage of public money. When you send your kids to PUBLIC school, you are taking advantage of public money. I could go on about the number of things you take from the tax payer every day that you have no idea you benefit from.
So, yeah, I think we all go on welfare every time we send our kids to school or drive on a public street, it just is not something we think about as being PUBLICLY funded. Just like welfare.
We can also kiss the penny tax goodbye. Any increase in tax for state and government projects will now jump by a nickle.
you hit the nail on the head , now everytime someone or the government raises prices or taxes it will by at least 5% not 1%
The Obama Penny Plan: Like Boiling a Frog - You turn the heat up very slowly so they go to sleep and eventually die!
1. Kill the penny and tell the public that it is saving them money since it cost 2.41 cents to make each penny.
2. Make the retailers round up to the next nearest $.05 so as to increase revenue to the retailer, but also to the government, all while taking the money out of the middle class pockets. (I realize that at this point the retailers will have a choice to round up or down, but trust me if they don't, it will eventually become law that they have to do it.)
3. Make sure the left wing media does a great job of selling it to the left wing zombies. Make sure that the right looks bad protesting it by making sure they use big words like sequestration, constitutional amendments, revenue, and budget, that basically confuse the left wing zombies. Do not let the right get the point across that this is a big ruse designed to empty the pockets of the middle class.
That is how it will go down in my opinion. The next step will be to kill the nickel, then the dime. Eventually everything will be rounded up a quarter. You cannot eliminate the quarter, because it will kill one of the best drinking games ever invented.
Okay left wing zombies! Bring it on! Dazzle me with your insults and lack of intelligence to appropriately address this issue and any other issue.