People love their Lincolns, as President Obama alluded to in a interview. When polled about their feelings in , the majority of U. Beyond sentimentality, however, there are a number of practical reasons to keep these coins.
Retailers in countries that have banned the penny, as has Canada, are required to round cash purchases up or down to the nearest five cents. This rounding algorithm is perfectly fair if prices are spread out evenly across the board.
President Barack Obama proposed an alternative solution in his budget: The likeness of President Lincoln on the obverse of the coin is an adaptation of a plaque Brenner created several years earlier which had come to the attention of President Roosevelt in New York. Its reverse was changed in from a wheat-stalks design to a design which includes the Lincoln Memorial to commemorate Lincoln's sesquicentennial and was replaced again in with four new designs to commemorate Lincoln's bicentennial. Birth and early childhood in Kentucky Lincoln Bicentennial, In addition to the prescribed elements on U.
However, merchants usually set the price. This means that merchants who strategically set prices could make one or two extra pennies on every cash transaction. Chipotle Mexican Grill tried this rounding method at some of its locations in to speed up lines.
It faced customer backlash at the register when people were given less change than they expected. Moreover, since the poor and disadvantaged use cash more than the rich , the rounding tax would fall disproportionately on them. And some businesses, such as a drugstore chain in Israel , avoided the problem altogether by voluntarily always rounding down rather than up after the country killed off its lowest-value coin. In addition, banning pennies is poor public policy because so many U. Rather than passing an unpopular ban, a smarter way to gradually reduce the use of low-value coins is to persuade a few major retail chains that do a lot of business in cash to round down purchases to the nearest five cents, like the Israeli drug store did.
Why would they do this?
If the above estimate that handling pennies adds several seconds to every transaction is correct, then by rounding down, companies would increase the number of customers each cashier can handle and also make patrons happier. The increased productivity might even be enough to pay for the lost revenue.
Inducing people to transition away from pennies with small monetary bribes will be a far more successful strategy than forcing people to give up coins they like. Being Well Together — Manchester, Manchester.
He wants the U. The penny was originally made of pure copper, but since , it has been wrought of Simply making the copper skin thinner would not save much money, as most of the penny's price hike has resulted from the rising cost of zinc, said Robert Pike, a chemistry professor at the College of William and Mary.
The Weirdest Metal Thefts ]. Switching from zinc to steel would thus reduce the production cost of the penny well under one cent, even if the coin's copper cladding were retained for consistency. As for nickels, they contain 75 percent copper and 25 percent nickel. Alternatively, the cores of both pennies and nickels could be made of something entirely nonmetallic. Gross began "harvesting" in his building, "asking neighbors if they had any pennies, and how they would feel about giving them to the homeless.
The Penny Harvest performs well within schools in every neighborhood. Last year , youth participated, including 7, student leaders selected to represent their communities in Philanthropy Roundtables at New York City schools. From Wikipedia, the free encyclopedia. Retrieved 24 December Check date values in: