IndexDecrease in Purchasing PowerEconomic InefficienciesEnvironmental ImpactCounterarguments and RebuttalsConclusionThe penny, a small denomination coin that has been part of the United States monetary system for over two centuries, is becoming more and more a subject of debate. While some argue for its sentimental and historical value, others say that the economic and practical considerations of maintaining the penny are no longer practical. This essay argues that the penny should be withdrawn from circulation due to its diminishing purchasing power, the inefficiencies it introduces into the economy, and the environmental impact of its production. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original EssayDecreasing Purchasing PowerThe most compelling argument for abolishing the penny is its decreasing purchasing power. When the penny was first introduced in 1793, its value was considerable. However, inflation has drastically reduced his purchasing power. According to the U.S. Bureau of Labor Statistics, what could be purchased with one cent in 1913 would today take more than 26. This decline in value means that the cent is now virtually useless in most transactions. The cost of producing and distributing the penny further compounds this problem. Data from the US Mint indicates that producing a single penny will cost approximately 2.06 cents starting in 2022. This discrepancy between the face value and the cost of production translates into a financial loss for the government, which is ultimately paid by taxpayers. purchasing power, the penny introduces significant inefficiencies into the economy. Both retailers and consumers spend a lot of time dealing with pennies, whether counting them, making changes or using them for deposits. A study conducted by the National Association of Convenience Stores and Walgreens found that handling pennies adds an average of two seconds to each cash transaction. While this may seem trivial, it results in significant losses of time and productivity on a national scale. Robert Whaples, an economist at Wake Forest University, estimates that time spent dealing with pennies costs the American economy about $900 million a year. This inefficiency also extends to financial institutions, which must allocate resources to store and transport pennies, further straining the economy. Environmental Impact The environmental consequences of penny production are also worth considering. Pennies are composed primarily of zinc, with a thin coating of copper. The extraction and processing of these metals have a significant environmental impact. Zinc mining, in particular, is associated with soil and water contamination, habitat destruction, and increased greenhouse gas emissions. The energy and resources needed to produce billions of cents each year contribute to environmental degradation, an issue that cannot be overlooked in an era increasingly focused on sustainability. According to the Environmental Protection Agency (EPA), the production of pennies generates approximately 7,000 tons of carbon dioxide emissions each year. Phasing out the penny would therefore help reduce the U.S. Mint's carbon footprint and align with broader environmental goals. Counterarguments and Rebuttals Supporters of the penny often cite its historical and sentimental value as reasons for its preservation. The penny features the iconic profile of Abraham Lincoln and has been a currency staple for centuries.