A Penny Saved..
So here’s a hot debate – do we obliterate the penny from our currency? The AP recently had an article about the potential elimination. Treasury Secretary Henry Paulson thinks the penny is “‘worth less than any other currency.’” He seems to think the dollar is also pretty worthless, since the only cash he carries on him is “a few dollar bills… to sign for people who ask for autographs.”
He does not plan to take on the challenge of eliminating pennies anytime soon. Instead, the Treasury is considering changing the metal content to lower production costs.
It’s a very debatable topic. Here are good arguments for and against eliminating the penny.
I’ve debated the topic in the past, and though pennies seem a nuisance and are economically inefficient, I always recount a story of my days as a consultant. During a cab ride from the IAH airport to my Midtown-Houston apartment, the rather eccentric cab driver (whose cab was lined with trinkets and dolls) struck up a conversation with me. We somehow arrived at the topic of Wal-Mart and he bemoaned the recent rise in “Always Low Prices.” He described how he saw his products increase by pennies each; he and his wife could not go out to the movies and had to restrict their dining out as a result.
Most of us don’t even stop to pick a penny off the ground anymore (I still do). I’d argue that the elimination of the penny, resulting in a “rounding tax,” will further impose upon people like my cabbie.
