Table of contentsDecreased purchasing powerEconomic inefficienciesEnvironmental impactCounterarguments and refutationsConclusionThe penny, a small denomination coin that has been part of the American monetary system for over of two centuries, is increasingly becoming a coin subject to debate. While some support its sentimental and historical value, others argue that the economic and practical considerations of maintaining the penny are no longer viable. This essay argues that the penny should be removed from circulation due to its diminished purchasing power, the inefficiencies it introduces into the economy, and the environmental impact of its production. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get the original essay Declining Purchasing Power The most compelling argument for abolishing the penny is its diminishing purchasing power. When the penny was first introduced in 1793, its value was considerable. However, inflation has significantly reduced its purchasing power. According to the U.S. Bureau of Labor Statistics, what a penny could buy in 1913 would require more than 26 cents today. This drop in value means that the penny is now virtually useless in most transactions. The cost of producing and distributing the penny further exacerbates this problem. Data from the U.S. Mint indicates that it will cost approximately 2.06 cents to produce a single penny starting in 2022. This gap between the face value and the cost of production results in a financial loss to the government, which is ultimately borne by taxpayers. Due to purchasing power, the penny introduces significant inefficiencies into the economy. Retailers and consumers spend a lot of time handling coins, whether counting them, making change or rolling them for deposits. A study by the National Association of Convenience Stores and Walgreens found that coin handling adds an average of two seconds to each cash transaction. Although this may seem trivial, it causes significant losses of time and productivity on a national scale. Robert Whaples, an economist at Wake Forest University, estimates that time spent managing money costs the U.S. economy about $900 million a year. This inefficiency also extends to financial institutions, which must allocate resources to store and transport coins, further straining the economy. Environmental Impact The environmental ramifications of coin production are also worth considering. Coins are primarily made of zinc, with a thin layer of copper. The extraction and processing of these metals have significant environmental impacts. Zinc mining, in particular, is associated with soil and water contamination, habitat destruction and increased greenhouse gas emissions. The energy and resources required to produce billions of pennies each year contribute to environmental degradation, a problem that cannot be overlooked in an age increasingly focused on sustainability. According to the Environmental Protection Agency (EPA), coin production generates approximately 7,000 tons of carbon dioxide emissions each year. Phasing out the penny would therefore help reduce the carbon footprint of the U.S. Mint and align with broader environmental goals. Counterarguments and rebuttals.