Prompt Cast
The Debate Over the Future of the US Penny
TLDR The production cost of the US penny now exceeds its value, leading to discussions about whether it should be eliminated from American currency. Despite losing over ninety million dollars per year on penny production, the lobbying efforts of the zinc industry and lack of interest in Congress have prevented any significant action on the issue.
Timestamped Summary
00:00
The US penny's production cost now exceeds its value, leading to questions about its continued use in American currency.
01:36
The US penny is officially called the "one cent piece" and was borrowed from the English coin known as a penny, which is one two hundred and forty-th of a pound.
02:59
The United States used to have a coin called the half-cent, and while most people think a penny is made of copper, it is actually mostly made of zinc with a copper coating.
04:22
The United States is losing over ninety million dollars per year on the production of pennies, and many other countries have already eliminated their low-value coins.
05:33
The primary reason the penny hasn't been eliminated is due to the lobbying efforts of the zinc industry.
06:47
The proposed legislation to eliminate the penny has not gained much traction in Congress due to lack of interest and apathy, and both political parties have not taken a clear stance on the issue.
08:06
The solution to dealing with pricing if the penny were to be eliminated is called Swedish rounding, where cash transactions are rounded to the nearest nickel, resulting in a maximum increase of two cents per transaction and no increase on average, while credit and debit card transactions would not be rounded at all.
