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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.”
RELATED: Conservative thinkers: GOP should cut 'stale' policies loose
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:
Too bad we didn't retire Obama
We tried, but the I want my handout, out dueled the producers, thereby increasing the burden on the producers. It has essentially become legalized theft of the working man/woman's money.
Won't the left have a field day with that comment! BRING IT ON!!!!!!
THe funny part is that if Obama could run for a 3rd term he would win...GOP has nothing to offer but criticism and rhetoric...
If you cut $58 million every year then does that not add up over time...Math is a wondrful tool try it sometime.
Frankie, So you are saying that the President could fool the people for a third time? Most were blinded in 2008 by the term Change even though he did not give any clear plan as to how change was going to happen or what his plan was going to be. (Much the way Romney was portrayed in 2012). In 2012, Most were blinded again with his rhetoric and with the dismantling of a good man (Romney) with one of the dirtiest and disgusting campaigns ever. Chicago style politics at its best. Really, Romney is a murderer?!?
If unemployment stays where it is and it will! I take that back, it is going to get worse based on his policies. If the economy continues to contract. And please do not try to use the Stock Market as an indicator that the economy is getting better. If this all happens, then I have hard time believing that OBama could win a third term even if he was allowed to run by a change in the constitution.
Why would he want to do that? He would just be presiding over his own wreckage.
It won't be time to 'retire' the penny until the plan to make them unnecessary has been implemented. Consumers can't be expected to 'pay more' for what they're purchasing even if it is only a penny (they DO add up over time). And I'm sure merchants aren't going to take to allowing consumers to 'pay less' for what their purchasing by reducing that total on the end of that receipt from, let's say, ninety-three cents to ninety.
Has anyone heard of a plan to 'force' all purchases to come out to 5, 10, 20 cents rather than an amount ending in 'pennies'? I haven't. Sounds like a phenomenal, costly undertaking to me. But, of course, if it saves the government a few bucks, why not? 'We the People' no longer count for anything in this country anyway!
The stores in Canada now do both rounding up and rounding down. Depending on the price they sometimes make more then they would on a sale and sometimes less. It did cause prices to jump on some items by 10s of cents because the store can not tell till the end of the year weather the round downs canceled the round ups. So they bring up prices to make sure they have an offset.
They certainly did not round at the price level and make it so all transactions came to a multiple of 5 cents.
The effect was a dramatic price in crease on some cheaper items like cola and such. It really is crazy to see 1.50 CHEAP drink get raised to 1.99 almost over night.
To the penny wise and pound foolish
It is not necessary to stop using the penny to stop making them. There are millions of pennies that have been taken out of circulation placed in cans and jars, bags and whatever in homes all over the country. Pennies could also be made more cheaply by changing materials or reducing size.
If you want to do something meaningful, stop printing $1 bills. $1 coins are cheaper to make and last 20 times longer. The savings there would be in the $40 - 50 million per year.
Good thought. The Government could pay people 1 1/2 c for each 1 c in their jar, which is less than the cost of 2.41 c to mint them, thus saving a bundle. The kind of thinking that escapes politicians and government employees!
Just ask them to make the dollar coin enough larger than in the past so they are not mistaken by the geniuses working the cash registers.
If a business were run the way this administration runs the country, it wouldn't be in business very long...2.41c to make a penny, that ridiculous, stop wasting taxpayer dollars making pennies...
Wow! Now here is something he can really get behind! The entire economy is on the brink of disaster and he is worrying about pennies? Penny wise and dollar foolish is the ony way to explain it. He needs to be checked for ADD! He has absolutely no focus and the attention span of a flea.
You have to deal with what you can understand. For Obama it's pennies.
You can not turn the mistakes of a nation around in 8 years and he is only coming up on his 5th year.
Both the dems and republicans have raped the US and we as the people electing them have just sat back in this self induced form of insanity and watched while every president of both parties have failed to do anything for the country.
If you keep voting for the same 2 parties, this is all you will ever have... A mess...
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
get a life all of you. stop arguing and come up some new ideas or solutions. Having Obama as president has made it clear that there are still millions of racists in this country. He is being blamed for everything, even if he poops gold you people will still find some wrong in it.
Wait he doesn't poop gold? I am so disillusioned! I thought he was the second coming and could do no wrong? He doesn't poop gold?!?! Shut my mouth!
I could care less about the color of his skin. What I care about is his character and his ability to lead, which he has very little character and cannot lead.
Character: Play golf over the weekend with Tiger Woods who is a disgusting human being based on what he did to his wife. Great golfer, scum bag of a human being. We are often measured by the company we keep. Just one example of poor character.
Leadership: Means admitting you screwed up when you screwed up rather than covering up with a lie about a video so you can protect your re-election. Benghazi would have gone away if he had just said we screwed up and we are going to make sure it never happens again. Then actually go after the individuals who perpetrated an act of war on American soil, rather than do nothing.
If you have to drop one drop the dime. They are too small to handle well, they don't easily work in vending machines. It takes two nickels to equal a dime, just use two nickels. I could say the same thing for the $10 bill-who needs them?
Eliminate the dollar bill and use a dollar coin too and then you have 4 coins and 4 bills (penny, nickel, quarter and dollar. Or $5, $20, $50 sndf the $100 bills.
I have even proposed to color code them and to make the bills increasing in size like the coins already are. And the coins are already close to red, white, blue and gold colored in ascending order.
Get rid of it. I hate carrying change around anyway.
but that only leaves Hope and that is almost gone.
The only thing that has grown useless,and should retire is Obama
Yeah, instead of finding easy ways to save money he should be focused on abortion right Bob?
Zeebol,
I have read Bob's comment a couple of times. It is only 12 words long. I do not see the word abortion anywhere in the sentence.
Please explain how you it is you think that Bob's sentence has anything to do with abortion. This should be good!
I didn't say he mentioned abortion, I mentioned abortion. Should be good? You're easily amused Roger - Shouldn't you be watching Fox & Friends or listening to Rush right about now?
Zeebol,
Yes I am easily amused by the left and their emotional thinking patterns.
So enlighten me O Great Zeebol! Why did you mention abortion as it has absolutely nothing to do with the article or the conversation?
Actually, O Great Zeebol, I am studying for the CPA exam so I can be a producer and not a taker like you!
Ah the old "taker" remark. Yup I was right, definitely a Rush day for you.
Politics aside, good luck on the exam... seriously.
Zeebol,
Thank you for the sentiment on the exam.
I have never listened to Rush a single day in my life, except to hear one or two very brief clips spun by the left wing media designed to make him look bad.
The election was not about facts and you know it. If it had been, then Obama does not get re-elected. We had almost the same situation as there was in 1980 and that doomed Carter (Thank God!) Reagan took 2 years and had us headed back in the right direction. We need a person who understands the economy and business, not a community organizer. The fact that he wants to raise minimum wage is an indication he does not understand how that will impact the economy. It leads to unemployment.
Hell, if Romney picks Rubio instead of Ryan, the right gets more than the 36% of the Latino vote and the right wins. I know that the left is very scared of Rubio due to all of the bashing on him that has already started and he has not even announced.
Zeebol: CVS called and your medications are ready for pickup. Do the rest of us a favor and pick them up and get back on them.
25sed, not me that needs the meds, Democrats won the election with a clear majority. Good luck rigging the districts, maybe you can get in by cheating.
Guess what all of you Obama haters, eliminating the penny was a republican idea.
"In 1990, United States Representative Jim Kolbe (R-AZ) introduced the Price Rounding Act of 1989, HR 3761 to eliminate the penny in cash transactions, rounding to the nearest nickel.[2]In 2001, Representative Kolbe introduced the Legal Tender Modernization Act of 2001, HR 2526, and in 2006 he introduced the Currency Overhaul for an Industrious Nation (COIN) Act, HR 5818"
This would put more money into the pockets of corporations and big business, in other words the top 1 percent and cost the taxpayers.
Go crawl back into your holes of denial.
Very good, Uranusrim, oops! Saturnsrim, One you can read which puts you one rung above most liberals. Yes, Obama is going to try and take credit for two failed resolutions by the republicans. He wil say that it is his idea all the way, just like he actually killed Bin Laden all by himself!
Wasting your breath saturn, it's the same hate every day from the low infos.
Roger - please show where Obama EVER claimed he killed Bin Laden by himself. It's that low info type of drivel that makes invalidates everything else you have to say.
Zeebol,
He was very quick to take credit for the killing of Bin Laden and not give any credit to all the work that took place before to find the SOB. The way it was spun by the left wing media outlets you would have thought that he flew both helicopters, pulled the trigger, prepared the body according to Muslim tradition (which he is familiar), and got back to the situation room without anyone noticing. He never gave credit to the Intelligence community or the SEALS who actually did get Bin Laden. He never gives credit where credit is due. It only points to his narcissistic nature.
And just for your information, I have never wanted the president to fail. However, personal observation and research, nothing from the media outlets have led me to the conclusion that Obama is a colossal failure as a leader.
If I say that he actually killed Bin Laden, then it is very tongue in cheek as he did not give credit where credit is due.
how did the conversation moved from the penny to the killing of bin laden?
A questions to you.......Would you rather be Obama while bin laden got killed, or Bush while we attacked and destroyed the wrong country????
so stop attacking the wrong person, what do you have to loose if you give credit to Obama for killing a terrorist or what do you have to gain for arguing against it?
Roger-1934531
Funny, I thought he gave credit to the men and woman that carried this out but to name them outright would have jeopardized their lives by making them targets for retaliation. Bin Laden was eliminated by his authority and by declaring this he accepted the risk it implied to the service members that acted on his behalf. What would you do? Accept credit for the idea then jeopardize every-ones lives that did your dirty work by naming them and making them scape goats?
"Oh it was my idea but shoot them because they listened to me and did what needed to be done."
That's about what I would expect from a chicken$hit trying to escape the consequences of his actions.
Roger-1934531
"That's about what I would expect from a chicken$hit trying to escape the consequences of his actions."
The barb is not directed at you but toward the CEO's and corporate heads that have escaped the consequences of their actions by using this tactic. Please accept this remark in the spirit it was meant.
Uranusrim,
I did not expect you to understand the point I was getting at. It is bit above your pay grade!
It would be irresponsible of the president to say the actual names of those people that carried out the orders. However, there was a lot that went on before he was even in office to make this possible. He could have easily recognized everyone's role without naming names and that it was a collective effort that enabled The US to get Bin Laden. He did not do it! Instead he used it as a a way of deflecting attention to the real issues facing the US such as the economy and Benghazi to get re-elected.
Instead we hear about how AlQuaeda is on the run and then Benghazi all on the heals of CBS reporter Laura Croft saying Obama is lying when he says AlQuaeda is on the run, that in fact it is stronger than ever, where? North Africa.
I am not totally convinced that it should have been announced that Bin Laden was dead.
Nice try though!
#1. Hilarious how liberals are blaming Congress for all the woes and demeaning anyone who dares criticize the Chosen One in the WH for his failures in leadership. Not his fault, it is Congress. These same idiots are the ones who blamed Bush for everything that happened five years ago instead of Congress (you remember, the Democratic House and Senate from 2007-2009). Hypocrisy; the mantra of liberals.
#2. Governments will love to get rid of the penny. Then instead of collecting taxes in increments of a penny, it will be a nickel. Think of all the ways politicians will be able to throw that money away!
Next we will get rid of the nickel in favor of the dime. WTF.
Stop making the penny. Us taxpayers cannot afford anymore losing propositions. The nickel should go as well.
Stop the losses now.
Yet they are stuck with another 4 years of Obama.
i can't believe almost 50% of people believe that the penny is still useful. these people are against Anything that Obama proposes. is it me or is only Obama the reason we are having some legislation go through. Is the congress or the senate working on anything new? or their job is to just vote for or against Obama's policies??
If there is anything Obama likes, the GOPigs are against it, even if it was their idea at first. Republicans would be against oxygen if the President supported it.
I would just be happy to never have to see a sign saying, on sale for $9.99 or $19.99 I think even the stupidest of us have figured out that really means $10 or $20
Putting it all together.
Guess what all of you Obama haters, eliminating the penny was a republican idea.
"In 1990, United States Representative Jim Kolbe (R-AZ) introduced the Price Rounding Act of 1989, HR 3761 to eliminate the penny in cash transactions, rounding to the nearest nickel.[2]In 2001, Representative Kolbe introduced the Legal Tender Modernization Act of 2001, HR 2526, and in 2006 he introduced the Currency Overhaul for an Industrious Nation (COIN) Act, HR 5818"
This would put more money into the pockets of corporations and big business, in other words the top 1 percent and cost the taxpayers.
This would allow the penny to be produced at far cheaper prices.
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."
This allows the cost of production to remain high increasing profits for this company.
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.
Although elimination of the penny would remove one source of profit from this company the cost of zinc of zinc and copper would increase to the nearest nickle allowing them to recover those profits in sales to other clients. This will be the end result.
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. We can also kiss the penny tax goodbye. Any increase in tax for state and government projects such as roads and bridges will now jump by a nickle tacked on to goods and services instead of a penny.
Go stick your heads back in the sand and crawl back into your holes repugs. This is another idea pushed by a repug agenda to further tax the American worker.
Wake up Obama.
Hey Saturnsrim,
One flaw in your thinking.
In order for customers to buy, they have to have capital. Rounding up takes additional capital away from the client thereby reducing his ability to buy. If a client buys less, then corporate profits go down and taxes collected by the government also go down.
Both republican proposals failed. Republicans have repeatedly said they are against more taxes. Your beloved potentate has raised taxes on the middle class more than any other president with his Obamacare and the last "budget" deal that also reversed the payroll tax so that 2% more came out of everyones check. Democrats are tax and spend! Get your facts right.
However, I will give you some credit for trying to put a little rational thought behind what you were saying.
As I tried to point out businesses will save money by cutting payroll to the nearest nickle and increasing the cost of products to the nearest nickle. Any additional cost for goods and services will be passed along to the consumer protecting their profit margin.
I believe you have your terms confused. Clients are usually the ones that buy goods and services to sell for a profit whereas those that buy for personal use or consumption are consumers.
A consumers needs are ones based on survival when applied to lower and lower middle income families compared to upper middle and high income families that most often by luxury items. Lower income families have little choice of how much an item costs when buying necessities.
Its time for the penny to go. In case you havent noticed, NOTHING COSTS A PENNY ANYMORE! WHY DO WE HAVE SOMETHING THERE IS NO USE FOR?????? Besides, its a pain in the butt to carry around. The sooner they get rid of it the better! They can make adjustments, its not that hard. And all the hoarders bringing in their jars to cash them in should help the economy.
I'm surprised he hasn't given an executive order yet to produce a new coin with his picture on it yet.
That would be great, Practical! A single dime with Obama's picture on it would be worth more than all the Republicans put together.
OVUgirl
Excelent comment, I applaud you.
Better yet - eliminate currency entirely. Get everybody on plastic "debit" cards or the like. Then Really Big Brother and Corporation Twins can track everybody's spending habits all in real time.
Not to mention the damper this would put on crime - crack dealers don't take checks or credit cards after all...
Plus Overly Big Government would be able to ensure garage-sale holders pay the correct taxes..
it's the perfect We-Lose, Too Big Government Wins scenario.
I say instead of getting rid of the penny, why don't we just get rid of Obama? The penny is worth one cent, Obama, "worthless".
Romneyhood lost. Get over it, amerigal.
When something costs more to make than it is worth, you don't make it anymore. Duh. There are billions and billions of pennies in circulation and they're not going away, anyway. the penny will be around for a century without minting a single one more.
I'll just keep mine by my 30 rd magazines. Together they are worth way more to me than what our fearless leaders are.
So what innocent people are you planning on killing, nut job 3rd?
good lord. get a life
Obama: Killing the American economy one penny at a time.
Seriously Obama knows that he can not do any immediate and major damage to our economy so he probably figures that if he kills the penny today he can get away with it. Then, when the dust settles from the death of the penny, nickles, dimes and quarters and fifty-cent pieces will be the next to go. Then if all goes according to plan those pesky dollar bills will be flushed down the toilet along with what is left of the American economy at that point. Obama has already succeeded in making our money worth less than it was when he took office and now we are seeing his next step to destroy the United States of America from within.
No while it may be true that it cost this country more money than a penny to produce a penny, getting rid of it is not the answer. Much like Obama blaming guns for the so called "gun violence" in this country instead of blaming the people responsible for illegally using the guns, Obama is using the BS of it costing more to produce a penny than it is worth, rather than reducing the cost of producing the penny in the first place.
Obama is a danger to this country. He is leading by example and his example is that people are not responsible for their actions, it is now and always will be the fault of something else or as is apparent in Obama's case someone else. REDUCE THE COST OF MAKING THE PENNY DON'T GET RID OF IT. PUNISH THOSE WHO USE FIREARMS FOR ILLEGAL REASONS, NOT THE FIREARMS, THEIR MAKERS OR THE MAKERS OF THE AMMO FOR THE FIREARM AND THE PEOPLE WHO WORK AT THE FACTORIES WHO MAKE FIREARMS AND AMMO. LAST BUT NOT LEAST MR. OBAMA: BE A MAN TAKE RESPONSIBILITY FOR YOUR ACTIONS YOURSELF AND SURPRISE US ALL FOR ONCE!
Do not retire Penny, for it is going to be more expensive when we buy a product or a service, or we are going to be paid less. Here is an example from a phone bill:
CA Advanced Services Fund (CASF) 0.04
CHCF A 0.12
CHCF B 0.09
Relay Service Device Fund 0.06
State 911 Tax 0.21
Teleconnect Fund 0.17
Universal Lifeline 1.03
There are many Pennies count, regardless of a bill being adding up. But each service has to include the penny. If they discontinue the penny count, then it may round up the consumers paying more for a product or a service.
I wish we could have a forum someplace where all the Obama haters could go and just rant and rant until they got tired, I am so sick of, regardless of the topic, people having to tell us how much they loathe this man. We got it, you don't like him, we don't care, we'd like to talk about something else once in a while. What in hell are you going to do, when his term is finished, you'll be devastated.
Not devastated......relieved provided we have not totally fallen into a Socialist dictatorship.
Maybe John, if the left did care about what we on the right have to say, we might just be able to get this ship righted and headed in the right direction. I have always wanted to understand the left's ideology and have asked numerous times for an explanation and all I get is vitriol and insults with no sound explanation. Facts matter to the right, where emotions matter to the left. The question is how do you blend the two?
i have not known a single one on the "right" that cares about facts.... everytime a fact is presented, the right attacks viciously claiming for things like "values", "honor", "faith" as above facts. clearly those on the rights only want facts that do not conflict with their beliefs because they have a hard time reconciling them. so be it.
Okay here are some facts that did not matter to the left:
1. 16 trillion in debt. 6 trillion of it added from 2008 to 2012.
2. 7.9% Unemployment rate despite a promise to bring it under 6% in his first four years.
3. 15 million more on food stamps!
4. Average income dropped almost $4000 per family.
5. Economy contracted in the last quarter. Again do not bring the Stock Market in to the equation. It is not a true reflection of the status of the economy.
6. Obamacare is a tax!
Those facts alone should have kept him from being re-elected.
Don't forget how many workers are getting their hours cut because of Obamacare.
Won't we all.