Electronic Forms of Payment
The interview with CNBC Squawk Box has brought up many good points and questions surrounding the penny. There is one very valid point about the demise of the penny. This is because of the electronic payment method. It should be known that approximately 75 percent of transactions are electronic. The penny may have lost its overall use. The current methods of payment are a factor that is incorporated in the penny debate.
To Eliminate the Penny of Not to Eliminate the Penny
The debate over the penny continues. The penny is the seat of President Abraham Lincoln. The state of Illinois does view the penny as a valuable coin. There are many who will claim that there is not a need for the penny. Many also claim that it is not worth picking up a penny at this current time. There are many views that may lead to the demise of the penny.
Economist Think Prices will be Distorted
There are some economist who hold the belief that if the penny is eliminated, the overall prices will be distorted. This is one argument that is for keeping the penny in circulation. Most transactions should not really be affected if the penny is removed from circulation. Would the prices be rounded up?
No Need to Irritate a Customer Over a Penny
The business perspective is included in this penny debate. A business will not want to irritate and lose a customer over one or two pennies. The nickel has been included in this penny debate. Competitive pressure may affect the penny debate.
Protection for the Penny
There are many groups who believe that the penny ought to be protected. The penny lobby would like to keep the penny in circulation. The production of the penny has actually been outsourced. The zinc industry would like to keep the penny. The state of Illinois also has an interest in keeping the penny protected. This entire process must be taken slowly. Thought is being put into this decision.
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