Someone please tell Kevin Federline to shut up.
A simpleton such as myself could hardly debate such an intelligent human being point for point because I haven’t done the hours of research that he has done on the penny, but from what I can see, the penny really isn’t all that useful anymore.
For those of you who were wise enough to steer clear of any headlines that had anything remotely to do with the husband of Britney Spears, you may have missed his haphazard campaign earlier this year to “bring power back to the penny.”
Federline was attempting to be a spokesman for cellular phone company Virgin Mobile’s pitch to reinforce the importance of the one-cent piece by charging its customers one cent for each text message they sent and donating the profits to charitable movements.
He threw his “celebrity” weight behind the pitch in a public speech by proclaiming, “Man, I feel good about the penny. I love it.” He then showed the crowd his phone number, sent the first “penny text” to his wife and encouraged everyone in the crowd to send him a text message. There are two things wrong with this picture. Kevin Federline is being allowed to speak in public, and the penny is actually fast becoming more than just a nuisance.
Anti-penny sentiment is growing on Capitol Hill for a reason: The penny now costs more to make than it is actually worth, mainly due to the dramatic increase in the price of zinc, which is one of the main elements used in the making of the coin.
According to the U.S. Mint, one penny will actually cost 1.23 cents to make by year’s end. This means it will cost five cents to make four pennies. Multiply that by the number of pennies that are manufactured each day. And don’t forget about distribution of the currency. That costs money, too. It’s no wonder that you find these coins lying on the grounds of sidewalks and parking lots on a regular basis.
Consider also that the utility of pennies is quite limited. You can’t go to a vending machine and purchase a coke with pennies. You’ll get laughed at if you attempt to use pennies to pay a bus fare.
There is currently a bill in Congress to eliminate the penny and round all transactions off to the nearest nickel. So far, public opinion on the issue has been about half-and-half. Supporters of the penny claim that rounding to the nickel would raise taxes, but making millions upon millions of pennies that cost more than face value doesn’t exactly keep taxes at a comfortable level, either.
So, the question stands: Is it really worth all the trouble to retire the penny? Well, it couldn’t hurt. Any attempt to breathe new life into the economy at this point would be better than continuing to leave pennies to wait endlessly in the cupholders of our vehicles.
Benjamin Franklin once said, “A penny saved is a penny earned.” This may have been true in the 18th century when the penny was actually worth something, but with inflation and the increasing costs of the metals used to make the coin, it really doesn’t do any good to pinch pennies anymore. They don’t add up to much, and they’re basically good for nothing but taking up space in desk drawers and cash registers all over the country.
Give credit to K-Fed for trying to raise awareness about something, but he’s got it all wrong. I, for one, don’t feel good about the penny, and until Congress passes the bill to take it out of circulation, I will continue to have those sentiments.