E-mail updates
Follow on Twitter
Subscribe to RSS
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:
Sure he can eliminate it, Look what he did to the value of the Dollar...
You people all say the exact same thing, its kinda pathetic
yea kinda like all the rah rah we hear from obama while he provides no plan on anything, except the secret plan he has for a socialist state
Veronica25 And so do you sheeple.
Yes i love the conspiracy theories, tell me more
Sheeple? Thats what the lames use to call people with a life in high school. But you republicans are all the same and it makes me smile when I know you all will never be in power again.
not when the liberals have mindless blobs like you walking to the polls
Here's one for you Veronica.....Barack Hussine Obumbler's real goal in life is to build outhouses for humanity with the "Second Worst President" in US History, 'Jimminty Stupit' Carter! [king obummer himself being the absolute worst]
Yea because republicans are known to be the educated folks lmao. I guess you dont look at exit polls or notice that drop out rates are high in republican states, test scores are low in republican states and they dont believe in going to college then complain that they cant find a job
What percent of millions of Americans getting Obama's Entitlements actually care? ZERO, just keep the freebees coming and fill my EBT Card; pennies...schmennies. Oh yeah,an all you working schmucks paying for Obama's handouts...quit complaining! One has to wonder how on earth he is still in the White House, my vote certainly didn't put him there!
LOL....
Now that's celebrating Black History Month.....YO.
The way I see it, is there are two kinds of History. History that is noteworthy and History that we aim to never repeat....Obama goes into the never Repeat History Book. :)
If Obama could pull this off, it will be the first time he has done anything I respect. Only problem is the poor will suffer. At least that is what my gf says. Kill the penny already so we can melt down the 10s of thousands of dollars of these little copper babies:)
I have plenty of big jars full of pennies..not worth much even if I melted them down..doubt 10 % of them are under the year 1982 (more copper)
Can Obama kill the penny? He has bigger fish to fry, like killing the United States. Who writes this crap? Get your head out of your backside Lemmings.
Does Fox dump their sewerage right into your head? Did JD Hayworth meet his horse/lover through you?
Herron, one thing for sure when you go to bed tonight, you will wake up the same way in the morning. And that is "Stupid".
AZTime. Look at AZ Schools. You were raised to be stupid! What are the schools, 49th i the US? (Alabama has better schools)
that is because they have so many illegals that the government says they have to educate........but first they have to spend so much time teaching them ENGLISH. No one ever mentions that fact. And they say the borders are secure. Right!
He's killed the economy, he might as well kill the penny too.
The only ones foolish enough to think he killed the economy are Fox News low IQ idiots.
Go watch the rug muncher Rachel Maddow, and the tingly in his leg guy Chris, the rump ranger Matthews.
AZ Time. I don't watch MSNBC. They are almost as NUTS as Fox Bimbos!
If he didn't kill the economy Herron, he surely hasn't done anything to fix it. His "stimulus" plans have cost us trillions with no return on the investment. The government has no business trying to create a false demand for green energies with taxpayer dollars when the market will fail once the government backed loans dry up.
Again. Still stupid.
You're the one that voted for him, twice probably. That is again, still stupid....
Amy(portland) and Allen(omaha): This Pres has done nothing but cost us more debt.(Not what he promised) His Obamacare will cost trillions not the billions that he spoke of. And the cost to the middle class will be devastating. He is trashing the military(cutting) so bad that if we were invaded in the future we would have difficulty defending ourselves.(that is his plan) he will not compromise with the Republicans ALSO as he said he would do. He will not get serious about cutting spending, yet he blames the Republicans for everything. He and Michelle spent over a billion of our taxes last year for their extravagant travels and their staff(which Michelle has 40 alone).No Pres has abused the Air Force One as he has done. He flies in it EVERY DAY which cost millions every time he goes. Yet he tells the American people to cut back. He continues to lie everyday to the American people because he knows that 1/2 of the country are gullible and wants to hold on to their free stuff. He will not close the border but wants to give amnesty to the millions who are here illegally. He wants to tax the RICH again......but he won't touch the rich Hollywood elite. If you had watch the movie Obama's 2016 you would know that he does not like the United States down deep. It is because of you and all the other uninformed people that this country will not survive Obama.
Please get informed. You're spewing lies. Fox, Rush, or the Beckerhead? Or is it the trifecta of stupid, and all 3?
I bet you listen to the alphabet networks who are in Obama's pocket. You my sir are the uninformed.
Please learn to read. Please learn not to watch just Faux News. You make me sad.
Typical lib. When you can't say anything intelligent then say something stupid.
And thus all our sales taxes among other taxes are raised, are they not? Ours is 0.0675 percent. Lets see, to the nearest nickel, that's 10 percent, using the bureaucratic calculator.
Peace
rounded to the nearest nickle on the whole purchase. Did you pass 8th grade math?
Herron, school waved you bye bye a long time ago. Probably like kindergarten?
republicans hates numbers because it makes them confused
Boy are you dumb.
16 trillion in debt Veronica!!! and nothing to show for it but CRAP....like your marketing degree
Lmao you love following around on here dont you? You need to get a life
Veronica
Tell me something.... why do brain surgeons re-classify ALL brain transplant operations for liberals as "implants" AND
Why does the DemoCRAPIC Party have an ass as its mascot? I mean besides having so many asses in it like you?
Ummm ok this will be the last time I write to you. You obviously have problems and you are very silly. Just keep your foil hat on and listen to Beck. Goodbye
and liberals "hates" words with more than 3 letters.
King Hussein Obama has already killed the dollar in essence as it isn't worth much considering the price of gas so the idiot may as well kill the pennies also.
So, the S+P and Dow at 6 years highs, and 36 straight months of job growth.
Or does Fox not tell you those FACTS?
"Dow at
65 year high"Lefty way of admitting the market isn't even back to where it was in 2007.
They can't say all-time high because we were still better off after 6 years of Bush policies back then.
The price of gas has no effect on the dollar. Thank you , Herron. Super nice highs in the DOW and other indices make me wonder about your sanity, Cliff. You bore mean. Stop drooling on yourself.
No they(wallstreet) see the sequester as the only way our country will get spending cuts and Obama will get his military cuts(gutting our armed forces). Too bad it does not include cutting everyones paycheck in Washington.
Not only can he wipe out the penny, he can wipe out the entire economy.
Really? Again? Bush sucks.
Jr I don't think Veronica read your post
she's working on her Marketing Plan for selling apples on a street corner in L.A.
Get a life loser, I could sell apples and still make more money than you hillbilly
You're cute when you get mad Veronica.... cute.... but still dumb!
You so ugly when you think your funny but atleast you didnt put a real pic on your avatar.
plz take yours off so we can eat supper
"you so ugly"
Is that a result of FOUR YEARS at UCLA???? wow! Do you ever have trouble spelling your crappy degree mill's name Veronica?
Yea sure apples, you will probably save my pic and spank your meat to it later. I know i look better than any women you can get. We know conservatives are awkward with women
lessie on a tear lookout
Can anyone convince me that posting anything on a MSN site has any redeeming value? For every one thought provoking comment there are at least 10 others that are mindless expressions by blind partisans. And given the MSN site, it's mostly thoughtless emotional outbursts by the lefties. Nothing to see here people; just keep moving on....
I have thought it through: You bore me. The term lefties is meaningless and ridiculous, because right doesn't mean right.
Agreed. Except there is plenty of mindless partisanship from both sides.
The discouraging part (for me): if you look through the comments on a story about either side, almost all comments are from the other. So a story about the GOP will garner 90% bashing from lefties, and vice-versa. If it's a story about the catholic church, most of the posters will be atheists calling all catholics child molesters. A story about atheists will garner posts from christians blaming them for the attack on christianity. Etc, etc.
Every once in a while, though - a really insightful post like LibtardDestroyer's above comes along, and makes it worthwhile wading through all of the partisan nonsense.
Don't know why not. Last November, 51% of the voters mistakenly thought re-electing Obama had some redeeming value.
ill bet all the republicans never thought they would see a day they wish they had slick willie back!
They would have loved Mit Boremey.
That's why they took 10 days off to prepare for the sequester, I guess.
He killed the economy, why not the penny too?
Oh wait, Bush, 5 years ago, excuse excuse......that's why Obama sucks in 2013........
Bush did.
Is this the "Fox News Secret Lie" of the day so you clowns can ID each other?
Pennies are cute.
Let's kill them.
He signed the order to kill Bin Laden, surely he can kill the penny.
Navy Seal : Sir, we've found Bin Laden. Should we kill him?
Oblahblah : Yes.
Navy Seal : Good call, Sir.
Yeah........what leadership.
Go outside and play, that would serve you better, these are adults talking.
Of course he can make the penny disappear.
He makes money disappear from my wallet on a daily basis.
Sure, sure, he answers questions about PENNIES. Let's see if someone in the 'Google Hangout' has the balls to ask about WHERE HE WAS DURING THE 8 HOURS of the BENGAZI Attack. We already know a real reporter tried and was physically removed from the White House. He would rather answer questions about his favorite Hip Hop band.
Sure, he can kill the penny.
If he can kill an American Ambassador, he could surely kill a penny.
If your policies destroy the entire economy, I don't see why you cannot destroy a penny.
The WAY to save the penny is simple.
Remove Lincoln and add Obama.
Nah........no one would want them any more.
Like I said, go outside and play, or put down the bong.
That would destroy the penny. At least now it has a value of 1 cent. Put Obama on it and it will have no value at all.
What piece of money do you think Obama WILL be put on? Food stamp coupons don't count.
LOL....
The Peso.
Of course Oblahblah wants to kill the penny.
Think about it.
If you have a sales tax of 7% on the dollar, do you really think that they are going to go back to 5%, or increase it to 10%?
Well, how about you just PAY THE RIGHT AMOUNT!!! You do realize that the close to a trillion pennies we have currently in circulation don't just magically disappear when we stop making new ones, don't you?
You do realize that money is removed from circulation, don't you?
I see HOF's point (although a quick check on the internets shows about 250 billion in circulation, not a trillion); it's going to be long time before they all go away. Sure, they take money out of circulation, but it's usually because the money in question (typically bills) are damaged. It would seem you could simply stop making them, save the fifty-something million, leave the existing ones in circulation, and all the problems that people bring up kind of just fade away.
If it costs more to make then what it is worth... DITCH it.. makes sense to me.. Maybe then the Pres. wouldnt have to come up with so many jobs? ( Like he is making any?)
I would rather the private business make money on this than the Govt. That just might make some jobs.
Why wouldn't they, twoann?
<blockquote>Can Obama manage elimination of one-cent coin?</blockquote>
Then there will be only hope with no change.
Fooled you.
We have no hope.
and that was my last penny's worth too.