Former President Donald Trump recently proposed ending the production of the penny, reigniting a long-running debate. Supporters argue that eliminating the one-cent coin could save the government money and reduce inefficiencies, while opponents believe it could lead to rounding issues and impact charitable donations. Is it time to say goodbye to the penny, or does it still have a place in our pockets?
Watch the video and be able to answer the questions below:
VOCABULARY QUESTIONS:
- What is “seigniorage“? The coin has had a negative seigniorage for almost 20 years and part of the reason for the increased production cost is the metal, in this case, zinc, has gotten more expensive. Explain what the word means.
- What does the phrase “round off ” mean? Canada rounds off all cash transactions to the nearest 5 cents interval. Make a sentence using the phrase.
- What does the word “mint” mean? Last year, the mint lost more than $85 million tom make more than 3 billion pennies. Use the word in a sentence.
DISCUSSION QUESTIONS:
- Do you think eliminating the penny would have a significant impact on everyday transactions? Why or why not?
- Should sentimental or historical value be a factor in deciding whether to keep the penny?
- Would rounding prices to the nearest nickel be fair to consumers and businesses?
- How do the costs of producing pennies compare to their actual usefulness in today’s economy?
- What potential effects could removing the penny have on low-income individuals and cash-based transactions?
- How have other countries handled getting rid of low-denomination coins, and what lessons can the U.S. learn from them?