Republican Jim Kolbe has twice (2002,2006) attempted to introduce legislation that would have ended the production of pennies and eventually left the 5 cent nickel as the lowest value in circulation. Both attempts were ignored.
Reasons for Elimination
1. Producation is at a loss. It currently costs about 1.7 cents to mint a penny.
2. Ultility is limited. Very few people use pennies in their daily transactions. Vending machines and toll booths do not accept them.
3. It would have no effect on prices. Consumers may actually gain about 1/40 a cent per transaction. (robert whaples, wake forest)
Preservation
1. It takes forever for our nation to do anything. (my opinion)
2. History. We've always used the penny. And people like Abraham Lincoln. His face is soothing like a cough drop.
3. The Zinc Lobby. Yes, there is a zinc lobby. They actively lobby in favor of the penny to preserve company profits on behalf of Jarden Zinc Products.
National Elimination Precedents
Isreal
Australia
Finland
Hungary
Sweden
Brazil
UK
Still uses one cent denomination or smaller:US
Russia
Japan
Namibia
and a list that reads like the coalition of the willing.
No comments:
Post a Comment