Dobbs 1
Jacob Dobbs Prof. Gabrielle Turgeon UWRT 1101-008 26 March 201 !rgu"en# an$ %olu#ion for &li"ina#ion of #he Penn' Pro$uc#ion of #he (enn' nee$s #o en$) i# cos#s "ore #o "a*e #han i# is +or#h. ,n 2016 one-cen# (ieces) or (ennies as #he' are (o(ularl' *no+n) cos# 1. cen#s #o "a*e) +hich is u( fro" 1./ cen#s in 201 o$ge -8. 3as# 'ear #he U.%. Treasur' Treasur' s(en# 41/6. "illion #o "a*e 451 "illion +or#h of (ennies o$ge -8. Which "eans #he' s(en# 4 "illion "illion "ore #o "a*e (ennies #han #he' are +or#h. %i"(l' (u# #he goern"en# is +as#ing a((ro7i"a#el' 41/6. "illion "a*ing (ennies annuall'. annuall'. Tha# is 41/6. "illion "illion #ha# coul$ be s(en# on e$uca#ion) (ublic #rans(or#a#ion) our aging infras#ruc#ure) or an' nu"ber of o#her i"(or#an# un$erfun$e$ (rogra"s. !n$ +i#h an annual infla#ion ra#e of 2.2 (ercen#) oer #he las# 20 'ears) #ha# $is(ari#' +ill onl' con#inue #o rise is#orical is#orical ,nfla#ion Ra#es 151-201. The U.%. goern"en# nee$s #o s#o( (ro$ucing #he (enn') #here are "an' reasons eli"ina#ing eli"ina#ing #he (enn' +oul$ be beneficial #o #he #a7(a'er an$ no ali$ reasons #o *ee( i#. &ffor#s #o (hase ou# #he (enn' hae been going on since as earl' as 1585 +hen R e(resen#a#ies e(resen#a#ies Ja"es !. a'es) of 3ouisiana) an$ Ji" 9olbe) of !ri:ona in#ro$uce$ #he ;Price Roun$ing !c# !c# of 1585.< While i# +oul$ no# hae eli"ina#e$ #he (enn' ou#righ# i# i# +oul$ hae "a$e i# ir#uall' obsole#e. obsole#e. The bill +oul$ hae re=uire$ roun$ing roun$ing for all cash #ransac#ions #ransac#ions an$ (ennies coul$ onl' be use$ in a"oun#s $iisible b' fie for a "a7i"u" of 2 cen#s (er #ransac#ion a'es an$ 9olbe. This +oul$ no# be #he firs# firs# #i"e #he U.%. has re"oe$ a coin fro" circula#ion. circula#ion. ,n 18) #he U.%. s#o((e$ (ro$ucing an$ using #he half-cen#) +hich ha$ a rela#ie alue of four#een cen#s as of 201. Use has alrea$' alrea$' been eli"ina#e$ a# !r"' a# !r"' > !ir ?orce &7change %erice !!?&% !!?&% s#ores oersees +i#h no nega#ie effec# on !!?&% or #heir cus#o"ers We Weinberg. inberg. @ana$a) !us#ralia) an$ Ae+ Bealan$ hae si"ilar econo"ies #o #he U.%. an$ #he' hae all eli"ina#e$
Dobbs 2
#heir one cen# (iece. Aone of #hese coun#ries hae re(or#e$ re(or#e$ an' nega#ie effec#s fro" fro" #he $iscon#inua#ion of #heir one cen# (iece Troubling M'#hs. !l#ering #he (enn' "a' see" li*e a si"(le solu#ion) af#er all #he U.%. Min# has #rie$ #ha# before) an$ #he' succee$e$ in $oing so in #he (as#. Pennies +ere originall' 100 (ercen# co((er an$ +eighing 1/.8 gra"s) bu# af#er going #hrough "an' changes in bo#h si:e an$ co"(osi#ion) #o sae on cos#) #he' are no+ 5. (ercen# :inc an$ 2. (ercen# co((er an$ +eigh Cus# 2. gra"s is#or' of #he 3incoln 3incoln @en#. ,n a 201 re(or# #o @ongress @ongress #he U.%. Min# s#a#e$) s#a#e$) ;There are no al#erna#ie "e#al co"(osi#ions #ha# re$uce #he "anufac#uring uni# cos# of #he (enn' belo+ i#s face alue< 201 iennial Re(or# Re(o r# #o #he @ongress. Wi#h Wi#h no o#her iable al#erna#ies #o "e#al co"(osi#ion #he onl' solu#ion is #o cease (ro$uc#ion. Ene goo$ reason is #ha# "os# "os# (eo(le $o no# of#en use cash #o (a' an'+a's. !s of 2016) onl' 2 (ercen# of (eo(le (eo (le use cash for "os# of #heir #ransac#ions) $o+n #+ele (ercen# (erce n# fro" 2011 %+if# an$ !n$er. !n$er. Wi#h Wi#h "os# (eo(le using car$s #o (a' "ore #han F of !"ericans !"ericans +oul$ no# be effec#e$ b' #he change. The fe+ #ha# $o s#ill s#ill use cash also +oul$ no# see a $ifference $ifference because cash #ransac#ions +oul$ be roun$e$) +i#h one) #+o) si7) seen roun$ing $o+n #o #he neares# :ero or fie an$ #hree) four) four) eigh#) nine roun$ing u( #o #he neares# :ero or fie. Man' (eo(le fear #ha# roun$ing +oul$ lea$ "erchan#s #o raise (rices #o faor #he") causing a so-calle$ ;roun$ing #a7.< o+eer) a 200 s#u$' b' econo"is# Rober# Wha(les sho+e$ #ha# #he fear of a roun$ing #a7 +as unfoun$e$ arre##. e loo*e$ a# a((ro7i"a#el' 200)000 cash #ransac#ions #ransac#ions for" 20 $ifferen# $ifferen# gas s#a#ions an$ conenience s#ores in seen $ifferen# s#a#es an$ foun$ #ha# cus#o"ers +oul$ hae gaine$ one cen# for eer' for#' #ransac#ions) basicall' bo#h s#ores an$ cus#o"ers bro*e een arre##. !$$i#ionall') !$$i#ionall') none of #he o#her coun#ries #ha# hae go##en ri$ of #heir one-cen# coin hae re(or#e$ (rice infla#ion $ue #o #he eli"ina#ion of #heir one-cen# (iece Troubling M'#hs. !no#her reason #o ge# ri$ of #he (enn' is #ha# no#hing no#hing cos#s #ha# li##le. li##le. ,n 180) a (enn' coul$ bu' a loaf of brea$ 9a(lan. ,n 1500) a (enn' bough# a ne+s(a(er Mon$a' #hru #hru %a#ur$a'
Dobbs 3
aber"an. ,n #he 15/0s a (enn' coul$ bu' a (iece of can$' a# #he corner s#ore or an a((le fro" a s#ree# en$er 9a(lan. u# #o$a' a (enn' canno# een bu' i#self. i#self. ,n 201)Rober# 201) Rober# %"i#h an$ Jacob Gol$s#ein of APR +en# aroun$ Ae+ or* @i#' #o #r' #o bu' so"e#hing for a (enn' an$ coul$ no# fin$ an'#hing +or#h #ha# li##le %"i#h an$ Gol$s#ein. Machines also $o no# acce(# (ennies. ?ro" foo$ an$ $rin* "achines #o "oie "achines) such as Re$bo7) no "o$ern en$ing "achines acce(# #he (enn'. (enn'. Ao# een (enn' slo#s in casinos casinos acce(# #he coin an'"ore 9o"e$a. &en #hough #here are "ore one-cen# slo#s slo#s #han fie-cen# #o 100 $ollar slo#s co"bine$ Ga"ing Ga"ing Reenue Re(or#. The onl' "achines #ha# $o acce(# (ennies are s#a"( "achines) an$ #he U.%. Pos# Effice is haing #rouble ge##ing ne+ ones an$ "ain#aining #he fe+ #he' $o hae %#a"( Hen$ing Hen$ing Machines. @oins#ar "achines also acce(# (ennies) bu# #he' are Cus# for ge##ing ri$ of #he" an$ #he' #a*e 10.5 (ercen# for $oing $ oing i# ?ees. ,n March 201) #hen %ecre#ar' of #he Treasur') Treasur') Jacob 3e+) +ro#e in a "e"o #o Presi$en# arac* Eba"a #ha# #he U.%. shoul$ eli"ina#e #he (enn' Aic*s. e also +en# on #o sa' sa' in Aoe"ber 201) ;WeIe ;WeIe been loo*ing a# #he (enn' for a long #i"e) because obiousl') #he alue of a (enn' has go##en g o##en s"aller an$ s"aller as #i"e has gone on) een +i#h lo+ infla#ion) i# con#inues #o $i"inish.< ?or"er Presi$en# arac* Eba"a has also su((or#e$ eli"ina#ing #he #he (enn' +hen he +as in office. When as*e$ +h' #he U.%. has no# eli"ina#e$ #he (enn' 'e# in an online in#erie+ in 201/ he sai$) ;, $onI# *no+.< @hea$le !s "en#ione$ (reiousl' (ennies are 5. (ercen# :inc +hich is a #o7ic "e#al. %+allo+ing onl' one (enn' is enough #o be har"ful #o a chil$. ,n one case a bo' +as #a*en #o a "e$ical cen#er #o hae a (enn' re"oe$ an$ i# ha$ los# 2 (ercen# of i#s "ass +hile in #he bo'Is s#o"ach an$ crea#e$ an ulcer Han. Han. ,# +as also s#a#e$ #ha# o#her coins +oul$ no# hae ha$ #his (roble" inclu$ing co((er coins) +hich #he (enn' use$ #o be. Pennies are also har"ful #o (e#s. ,n one case s#u$' of nine#een $ogs +i#h :inc #o7icosis onl' seen#een surie$ R'an.
Dobbs 4
Pennies (ro$uc#ion is also har"ful har"ful #o #he eniron"en#. Binc "a*es u( 5. (ercen# of #he (enn' an$ #he "ining an$ refining of :inc is no# goo$ for #he eniron"en#. Binc ores con#ain onl' /-11 (ercen# :inc Binc %"el#ing. !$$i#ionall') !$$i#ionall') all :inc s"el#ing (rocesses receie$ an e"ission fac#or ra#ing of &) #he +ors# (ossible (ossible ra#ing Binc %"el#ing. Wi#h Wi#h (ennies "a*ing u( "ore #han 0 (ercen# of #he circula#ing coins (ro$uce$ annuall') s#o((ing #he (ro$uc#ion an$ $is#ribu#ion of (ennies coul$ cu# #he energ' use$ b' 0 (ercen#. Wi#h Wi#h no al#erna#ie #o #he curren# "e#al co"(osi#ion #here is onl' one solu#ion) ge# ri$ of #he (enn'. %o) +ho +an#s #o *ee( #he (enn' Ene of #he bigges# su((or#ers is !"ericans !"ericans for @o""on @en#s!@@. Ene of #he foun$ers an$ bigges# con#ribu#ors #o !@@ is Jar$en Jar$en Binc Pro$uc#s. The hea$ of !@@) Mar* Weller Weller)) is also a lobb'is# for Jar$en Binc Pro$uc#s E+en. Jar$en Binc Pro$uc#s is #he sole su((lier of (enn' blan*s blan*s #o #he U.%. Min# E+en. E+en. ?ro" 2006 #hrough #he firs# =uar#er of 201 Jar$en Binc Pro$uc#s (ai$ 41. "illion for ;,ssues rela#e$ #o #he one-cen# coin an$ U.%. Min# al#erna#ie al#erna#ie "e#als s#u$'< Kuinn. The U.%. Min# shoul$ no# *ee( #he (enn' Cus# #o hel( (ro#ec# one co"(an'Is bo##o" line es(eciall' +hen #ha# co"(an' has a es#e$ in#eres#. %o"e (eo(le also argue #o *ee( #he" because #he' honor !braha" !braha" 3incoln. u# 3incoln is also on #he fie-$ollar fie-$ollar bill. e is also honore$ +i#h +i#h #he 3incoln Me"orial) on Moun# Rush"ore) on "an' s#a"(s) an$ "an' "an' o#her s#a#ues an$ "onu"en#s aroun$ aroun$ #he coun#r'. e also has an aircraf# carrier na"e$ af#er hi") #he USS Abraham Lincoln. Lincoln. e has "an' #o+ns na"e$ af#er hi" inclu$ing 3incoln) Aebras*a #he ca(i#al of #he s#a#e. e has #he !braha" 3incoln Presi$en#ial 3ibrar' an$ Museu" in Museu" in %(ringfiel$) ,llinois. ,llinois. e is also fea#ure$ in "oies) such as #he 1508 fil" The Reprieve: An Episode in the Life of Abraham Lincoln an$ #he "ore "o$ern Lincoln an$ Abraham Lincoln, Vampire Vampire Hunter . e has also ha$ nu"erous $ocu"en#aries "a$e
abou# his life) for e7a"(le Looin! "or Lincoln an$ Abraham Lincoln: American #astermind.
Dobbs 5
e has also been re"e"bere$ b' (eo(le ou#si$e of !"erica. !"erica. &nglish (la'+righ#) John Drin*+a#er) +ro#e Abraham Lincoln +hich +as (o(ular in &uro(e &uro(e as +ell as !"erica. e is also honore$ b' Jules Herne in T$ent% Thousand Lea!ues Under the Sea an$ The #%sterious !braha" 3incoln +as or +ha# he $i$ #o *ee( #his coun#r' &sland. Ao one +ill eer forge# +ho !braha" #oge#her $uring #he @iil War War an$ #o abolish slaer' an$ "a*e #he Uni#e$ %#a#es a #rul' free na#ion) regar$less of +ha# currenc' he is on. Re"oing #he (enn' fro" circula#ion +oul$ +oul$ hae no effec# on !braha" 3incolnIs legac'. legac'. !no#her co""on reason gien #o *ee( #he (enn' are (enn' $ries hel$ b' chari#ies. There hae been no n o re(or#s of chari#ies being effec#e$ b' (enn' eli"ina#ion in @ana$a) !us#ralia) !us#ralia) or Ae+ Bealan$ Troubling Troubling M'#hs. @hari#ies $onI# rel' on (enn' $ries. !s Jeff Golb') $irec#or of chari#' ban* @hi"( ?un$) (u# i#) ;En so"e leel 'ou go) LE9) i# canI# hur#)I bu# +hen 'ou fac#or in +ha# i# cos#s #o chari#' . . . in #i"e) in rolling cos#s) co s#s) i#Is no# a cos#-effec#ie +a' for chari#ies #o reall' ac#uall' ne# $ecen# "one'.< McKuigge When (ennies are eli"ina#e$ chari#ies +ill be able #o #hro+ "ul#i(le (enn' $ries #o hel( collec# #he". !f#er (ennies are all collec#e$) #he chari#ies coul$ si"(l' "oe on #o nic*el $ries +hich shoul$ (roe #o be "ore cos# effec#ie for #he chari#ies. The solu#ion is si"(le) si"(le) s#o( (ro$ucing (ennies. The U.%. can loo* a# @ana$a as goo$ e7a"(le of ho+ #o s#o( (enn' (ro$uc#ion) (ro$uc#ion) as #he' go# ri$ of #he (enn' in 2012 MaKuigge. The Min# +oul$ s#o( (ro$uc#ion a((ro7i"a#el' a((ro7i"a#el' one 'ear af#er #he legisla#ion legisla#ion +as (asse$. Use in s#ores +oul$ #hen be (hase$ ou# #+o #o #hree 'ears af#er af#er (assing. During #his #i"e #i"e businesses +oul$ be encourage$ #o roun$ #he (rice u( or $o+n) bu# coul$ $eci$e +he#her #he' e7ce(# (ennies. !f#er !f#er #ha# #+o #o #hree 'ears) (ennies +oul$ no longer be acce(#e$ b' businesses. o+eer) (eo(le +oul$ al+a's be able #o $e(osi# $e(o si# #he" or #urn #he" in for an' o#her legal #en$er a# a ban* or in change "achines such as @oins#ar.
Dobbs 6
Wha# shoul$ be $one +i#h #he 16./1 billion (ennies in circula#ion circula#ion !f#er s#o((ing (ro$uc#ion of #he (enn') #he U.%. Min# +oul$ +oul$ begin collec#ing #he" an$ sen$ing #he" bac* #o #heir fac#ories +here #he' +oul$ be "el#e$ $o+n for #he :inc an$ co((er co(( er an$ #hen #he "e#als coul$ ei#her be use$ #o "a*e o#her o#her coinage or sol$. The onl' i"(ac# eli"ina#ing #he #he (enn' +oul$ hae is saing #he #a7(a'ers "one'. ,# is no# a "a##er of if #he U.%. ge#s ri$ of #he #he (enn') bu# +hen.
Wor*s @i#e$ McKuigge) Michelle. ! Penniless @ana$a Min# egins earsears-long long Process of @ollec#ing @o llec#ing an$ Mel#ing $o+n 82-"illion 9g in @oins. nationalpost.com, 0 ?eb. 201/. ne+s.na#ional(os#.co"Nne+sNcana$aNcana$ian-(enn'-las#-$a'.. !ccesse$ 20 ?eb. 201. ne+s.na#ional(os#.co"Nne+sNcana$aNcana$ian-(enn'-las#-$a' arre##) Maggie. ProfessorOs Research %u((or#s &li"ina#ing Penn'. Penn'. 'fu.edu) 18 Jul' 2006) +++.+fu.e$uN+fune+sN2006N2006.0.18.+.h#"l +++.+fu.e$uN+fune+sN2006N2006.0.18.+.h#"l.. !ccesse$ 20 ?eb. 201. 201 . o$ge) Ja"es. U% Min# !u$i# Re(or# 2016.< usmint.or! ) ((. -8) 21 Dec. 2016) +++.us"in#.goN$o+nloa$sNabou#Nannualre(or#N2016!nnualRe(or#.($f. +++.us"in#.goN$o+nloa$sNabou#Nannualre(or#N2016!nnualRe(or#.($f. !ccesse$ 20 ?eb. 201. Aic*s) Dener. Ge# Ge# Ri$ of #he Penn' Time) 20 !(r. 2016. #i"e.co"N"one'N/005Nge#-ri$-of-(enn'-Cacob-le+N. !ccesse$ !ccesse$ 2 ?eb. 201. a'es) Ja"es) an$ Ji" 9olbe. ;.R. /61 /6 1 Price Roun$ing !c# of 1585.< (on!ress.!ov. 1 Dec. 1585. h##(sNN+++.congress.goNbillN101s#-congressNhouse-bil h##(sNN+++.congress.goNbillN101s#-congressNhouse-billN/61N#e7#. lN/61N#e7#. !ccesse$ 28 ?eb. 201. @hea$le) arr'. Eba"a Wan#s Wan#s #o 9ill #he Penn' Penn ' an$ %o %houl$ ou. Vice) 1 ?eb. 201/. +++.ice.co"NenusNar#icleNoba"a-+an#s-#o-*ill-#he-(enn'-an$-so-shoul$-'ou.. +++.ice.co"NenusNar#icleNoba"a-+an#s-#o-*ill-#he-(enn'-an$-so-shoul$-'ou !ccesse$ 28 ?eb. 201. 9a(lan) Michael. Wh' $i#ching #he (enn' "a*es cen#s. )e$ *or *or +ost ) 0/ %e(#. 201/. n'(os#.co"N201/N08N/1N+h'-$i#ching-#he-(enn'-"a*es-cen#sN. !ccesse$ !ccesse$ 1/ Mar. 201.
Dobbs 7
%"i#h) Rober#) an$ Jacob Gol$s#ein. These Da's Da 's ! Penn' DoesnO# u' Her' Her' Much. )+R.com) 21 Ma' 201. +++.n(r.orgN201N0N21N/1812N#hese-$a's-a-(enn'-$oesn# bu'er'-"uch. !ccesse$ 1/ Mar. 201. 201 iennial Re(or# #o #he @ongress. Usmint.!ov. Uni#e$ %#a#es Min#) Dec. 201. +++.us"in#.goNabou##he"in#NPD?sN201-r$-biennial-re(or#.($f. +++.us"in#.goNabou##he"in#NPD?sN201-r$-biennial-re(or#.($f. !ccesse$ 10 Mar. 201. %#a"( Hen$ing Hen$ing Machines. US+S ffice of &nspector -eneral ) 28 June 2010. +++.us(soig.goNblogNs#a"(-en$ing-"achines. +++.us(soig.goNblogNs#a"(-en$ing-"achines. !ccesse$ 1/ Mar. 201. 9o"en$a) &$. @ha-chingQ This is reel nos#algia. LasVe!asSun.com LasVe!asSun.com) 0 Ma' 201. lasegassun.co"Nne+sN201N"a'N0Ncha-ching-reel-nos#algiaN. !ccesse$ !ccesse$ 1/ Mar. 201. G!M,AG R&H&AU& R&PERT. -amin!.nv.!ov. /1 Jan. 201. +++.ga"ing.n.goN"o$ulesN +++.ga"ing.n.goN"o$ulesNsho+$ocu"en#.as(7$ocu"en#i$11850. sho+$ocu"en#.as(7$ocu"en#i$11850. !ccesse$ 11 Mar. 201. Han) Han) Jon. %+allo+e$ Pennies @an e ar"ful. (hica!otribune.com) 01 Dec. 1558. ar#icles.chicago#ribune.co"N1558-12-01Nne+sN58120101021(ennies-s+allo+e$-coins. !ccesse$ 1/ Mar. 201. R'an) Ma##he+ J. Binc in#o7ica#ion in $ogs 15 cases 1551-200/. ournal of the American 3 ibrar' of Me$icine) 1 !(r. 200. Veterinar% #edical Association. U.%. Aa#ional 3ibrar' h##(sNN+++.ncbi.nl".nih.goN(ub"e$N10166.. !ccesse$ 1/ Mar. 201. h##(sNN+++.ncbi.nl".nih.goN(ub"e$N10166 is#orical ,nfla#ion Ra#es 151-201. US &nflation (alculator ) 1 ?eb. 201. +++.usinfla#ioncalcula#or. +++.usinfla#ioncalcula#or.co"Ninfla#ionNhis#oricalco"Ninfla#ionNhis#orical-infla#ion-ra#esN. infla#ion-ra#esN. !ccesse$ 1/ Mar. 201. Weinberg) Weinberg) !li. Penn' (inching @an Eba"a "anage eli"ina#ion of one-cen# coin )/()e$s.com, 15 ?eb. 201/. firs#rea$.nbcne+s.co"Nne+sN201/N02N15N10150-(enn'-(inching-can-oba"a"anage-eli"ina#ion-of-one-cen#-coin. !ccesse$ 1/ Mar. 201. Binc %"el#ing. Epa.!ov. +++/.e(a.goN##nchie1Na(2Nch12NfinalNc12s0.($f. !ccesse$ 11 Mar. 201. aber"an) @l'$e. 100 ears ears !go) ! Penn' ough# #he Worl$. Worl$. The )e$ *or Times) /1 Dec. 1555. +++.n'#i"es.co"N2000N01N01Nne+sNreflec#ions-100-'ears-ago-a-(enn'-bough##he-+orl$.h#"l. !ccesse$ 2 Mar. 201. Troubling M'#hs. Retirethepenn%.or! Retirethepenn%.or! . +++.re#ire#he(enn'.orgN"'#hs.h#"l. !ccesse$ 2 Mar. 201. is#or' of #he 3incoln @en#. U.S. 0epartment of the Treasur% Treasur%. Jan. 2011. +++.#reasur'. +++.#reasur'.goNabou#Ne$uca#ionNPagesNlincoln-cen#.as(7. goNabou#Ne$uca#ionNPagesNlincoln-cen#.as(7. !ccesse$ 2 Mar. 201. ?ees. (oinstar .com, +++.coins#ar.co"Nel(@en#er. !ccesse$ 2 Mar. 201. Kuinn) &rin. ;%aing #he (enn' "a*es cen#s for :inc-bac*e$ grou(.< +ublicinte!rit%.or!, +ublicinte!rit%.or!, 2 Jul' 201. +++. +++.(ublicin#egri#'. (ublicin#egri#'.orgN201N0N02N155Nsaing-(enn'-"a*es-cen#s-:incorgN201N0N02N155Nsaing-(enn'-"a*es-cen#s-:inc-
Dobbs 8
bac*e$-fron#-grou(. !ccesse$ !ccesse$ 2 Mar. 201
