The Instigator
SuperPerfundo
Pro (for)
Losing
0 Points
The Contender
animea
Con (against)
Winning
21 Points

Get rid of pennies

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Post Voting Period
The voting period for this debate has ended.
after 3 votes the winner is...
animea
Voting Style: Open Point System: 7 Point
Started: 2/10/2009 Category: Politics
Updated: 8 years ago Status: Post Voting Period
Viewed: 2,530 times Debate No: 6870
Debate Rounds (3)
Comments (12)
Votes (3)

 

SuperPerfundo

Pro

Resolved: The US government should stop minting the Jefferson nickel and assign the Lincoln penny a five cent value in its place.

Due to the rising, and risen, costs of metal, minting change is more expensive than ever. A Jefferson nickel costs almost 8 cents to mint and the Lincoln penny about 1.25 cents.

Normally, the government makes profit by minting money (seigniorage), paying production cost and recieving face value. But, in the case of nickels and pennies, the government lost almost $100 million dollars alone in 2007.

So, a simple remedy is to stop minting the Jefferson nickel, and make the Lincoln penny worth five cents. This not only saves the 3 cent and .25 cent loss for every nickel and penny minted, but creates a profit gap where the new Lincoln nickel makes the government 3.75 cents per coin.

This begs the question, how would we handle cash transactions without a cent piece for precise change? Following other countries like Australia, we would instiute a rounding system, where cash transactions are rounded to the nearest 5 cents. (1, 2, 6, & 7 round down; 3, 4, 8 & 9 up).

So, not only would the American taxpayers save hundreds of millions of dollars, we wouldn't have to deal with those one cent nuisances anymore.
animea

Con

Roadmap- I will go over the benefits of the penny then refute my opponents arguments.

C1) While individually pennies are not worth much, over time they add up.

A) In 2002, Gallup polling found that 58 percent of Americans stash pennies in piggy banks, jars, drawers and the like, instead of spending them like other coins. Some people eventually redeem them at banks or coin-counting machines! So many Americans actually do use the penny.

B) Furthermore, the penny is used to raise money by charity organizations. People who would not be willing to part with a larger bill are often willing to give up Pennies. The Leukemia and Lymphoma Society has raised 150 million dollars through its "Pennies for Patients" program over 15 years. Without the penny, this cancer research would not have been possible.

C2) Pennies help fight inflation

"We think the penny is important as a hedge to inflation," says director Mark Weller of Americans for Common Cents. "Any time you have more accurate pricing, consumers benefit." Small business owners and small purchases rely on the penny. Loss of the penny will create inflation and price instability.

http://www.offthekuff.com...

C3) The rise of credit cards defeats the purpose of rounding coins.

The common complaint about pennies is that they are inefficient to use. Credit cards however operate by computer. They can handle as many digits as needed. As credit cards become more common, pennies will be used less. So these disadvantages become less noticeable.

Onto my opponents case

"But, in the case of nickels and pennies, the government lost almost $100 million dollars alone in 2007."

First, I would like to point out my opponent provided no sources for this claim(or any claim he makes). The argument should be discredited on that basis alone.

Second, the federal government has a budget of three trillion a year. 100 Million dollars would be .0003 percent of the yearly budget. This would have a virtually unnoticeable effect on the budget (It would save everyone money in the pennies, which as my opponent has abolished would result in no benefit for most tax payers). This is significantly outweighed by the extra money a 99 cent purchase would now cost (1 percent).

http://www.wallstats.com...

"So, a simple remedy is to stop minting the Jefferson nickel, and make the Lincoln penny worth five cents"

This part of my opponents case would have a significant negative impact on the economy. Suddenly, every penny a person owns would quintuple in value. The amount of money in the US economy would change. Assuming Congress was even considering passing this bill, there would be a mad dash by consumers to acquire as many pennies as they can. This would create much instability in the market place.

In summary, I provide 3 reasons we should keep the penny in circulation, disprove the only reason my opponent actually gives to abolish the penny(100 million spent) and prove how his implementation would hurt the economy far more than it would help.
Debate Round No. 1
SuperPerfundo

Pro

SuperPerfundo forfeited this round.
animea

Con

my opponent has forfeited the round, so I just extend all my previous arguments.
Debate Round No. 2
SuperPerfundo

Pro

SuperPerfundo forfeited this round.
animea

Con

Well, my opponent seems to have just forfeited the debate. Vote pro because all of my arguments stand.
Debate Round No. 3
12 comments have been posted on this debate. Showing 1 through 10 records.
Posted by zach12 7 years ago
zach12
you said vote pro in your last vote animea
Posted by animea 8 years ago
animea
Math is fun john
Posted by s0m31john 8 years ago
s0m31john
penny = worthless garbage (given)
penny = (1/100)dollar (given)
dollar < worthless garbage (given)
dollar < penny (substitution)
dollar < (1/100)dollar (substitution)
1 < (1/100) (division)

WAT
Posted by jjmd280 8 years ago
jjmd280
RoyLatham -

In the United States and Canada, "penny" is normally used to refer to the coin; the quantity of money is a "cent."

That's the difference. You are correct officially.
Posted by Johnicle 8 years ago
Johnicle
Just so you know, if I weren't busy prepping for my NFL District tournament next Friday, I would take this and negate via, "We should get rid of the penny, nickel, AND dime."

Dear Contender, You may take my idea!
Posted by dtclark2188 8 years ago
dtclark2188
I don't know what process they went through, but the Netherlands does not utilize the 1 or 2 cent euro pieces. Rather, they round up or down. I have to admit, it is quite nice not having to carry around all of those annoying little 1 cent pieces, especially when a person has to deal with the 1 and 2 euro dollar coins. Anyway, I just thought I'd add my two cents (or 5 cents I guess) to the conversation :)
Posted by RoyLatham 8 years ago
RoyLatham
Britain has pennies, the US has only cents.

Japan one yen coins are worth about one cent. They are made out of aluminum so they can be made at a profit. In practice, they are not used very much because people do the rounding even though the coin exists. My guess is that having an official coin that appears to be worthless aluminum helps encourage rounding.

In some South American countries, the solution has been to redefine the currency so that one nuevo centavo is equal to ten old ones. All the currency is reissued with the new designations.

It's a good debate topic, I just don't have an opinion as to what route is best.
Posted by s0m31john 8 years ago
s0m31john
If anything it's better to make the switch when all the good shows are on. That way people have a motivator to get the converter box asap.
Posted by Tatarize 8 years ago
Tatarize
The resolution is wrong. You stop minting pennies and switch over the registers to phase-out mode. They round down and up accordingly and make sure there's no need to have a penny change ever. The reassigning of the penny is absolutely wrong. You don't suddenly make these coins that say 1 cent worth 5 cents. That's bad enough to screw the resolution.

July is better for the digital switch over. Wait until summer when the shows worth watching go off the air.
Posted by JustCallMeTarzan 8 years ago
JustCallMeTarzan
you don't have to tell them over and over again - just kinda do it - lol.
3 votes have been placed for this debate. Showing 1 through 3 records.
Vote Placed by zach12 7 years ago
zach12
SuperPerfundoanimeaTied
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Vote Placed by animea 8 years ago
animea
SuperPerfundoanimeaTied
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Vote Placed by Tatarize 8 years ago
Tatarize
SuperPerfundoanimeaTied
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Total points awarded:07