Chapter 14, Problem 22AA

To determine

To evaluate:The reason for theU.S. government discontinuing the production and use of pennies and also to analysis why and why not pennies should be discontinued.

Explanation of Solution

The reason for stop producing and use of pennies in the U.S are due to some issues that can be known from its challenges issues. Some of the reasons for the advantages and disadvantages of using pennies due to the following reason. The supporters are of the view that storing the penny makes the customer costs down, and avoids low-income harming households. “M W”, Executive Director of the Americans for general cents pro-penny movement, says, the alternative to the penny is to round the nickel, and that's going to be something. Pennies are less expensive to produce than nickels, the unprivileged pay the most since smaller sales require further rounding up, so the extra cents are simply cutting into their budgets. So, pennies should not be withdrawn for consumer safety protection while on the other side one of the most convincing reasons cited to get rid of the penny is that inflation and rising metal prices have made it unprofitable. The U.S. since 2006 realized that on every penny its made mint has lost revenue.

Economics Concept Introduction

Introduction: The one-cent coin of the United States was the lowest unit of value amount in the United States of America in 1857 after the removal of the half-cent. The first U.S. cent was created in 1787, and during its existence, the cent was mostly issued as silver or silver-plated coin.