Canadian Penny Killed: U.S. Opponents Of 1-Cent Coin Point To Canada As 'Trail-Blazer'

First Posted: 03/30/2012 1:25 pm Updated: 03/30/2012 7:57 pm

WASHINGTON - News that Canada is doing away with the penny has renewed debate in the United States about whether it's time to rid itself, too, of a piece of currency once described by an esteemed American publication as "horrid and useless."

Canada came in for high praise Friday from a U.S. advocacy group called Citizens for Retiring the Penny, with its motto "Isn't it annoying?"

"If Canada can do it, why can't we?" asked Aaron R. Priven on the group's Facebook page.

"Bravo!" added another. "Canada has done the right thing. Hopefully the U.S. will soon follow."

The idea of eliminating the penny, stamped with the noble profile of revered former president Abraham Lincoln, has been a topic of debate for years in the United States, where it costs 2.4 cents to produce the coin.

"Why do pennies exist?" writer David Owen asked in a New Yorker piece in 2008 that called for the coin's elimination and lauded Canada for taking a modern approach to eliminating bothersome pieces of currency, including one- and two-dollar bills.

On Friday, he had nothing but praise for Canada for once again taking the leap.

"Canada is and has been a trail-blazer, and was out early on a number of fronts, including eliminating the one-dollar bill, switching to different, cheaper metals — things that Americans have been reluctant to do," Owen said in an interview.

"I don't know if Americans will ever come around on it. There's a sentimental attachment to the penny .... We probably won't be done with them until we're done using cash in general, when people start using their phones to pay for things."

The Obama administration has toyed with the idea of using cheaper materials to make both the penny and the nickel. Currently, the penny is composed chiefly of zinc with a thin copper coating.

Barack Obama went much further when he was campaigning for president four years ago.

"We have been trying to eliminate the penny for quite some time — it always comes back," Obama said. "I need to find out who is lobbying to keep the penny."

The debate even earned its way into an episode of the political TV drama "The West Wing" in 2001, when Sam Seaborn, the character played by Rob Lowe, took up the cause.

The only coin-operated machines that accept pennies anymore, Seaborn said, are "those coin-wrapping machines people buy to get rid of pennies."

But in a country with a passion for its historical artifacts, eliminating the coins outright is considered a political hot potato.

Two separate bills calling for the demise of the penny, tabled in 2002 and 2006 by Republican congressman Jim Kolbe, failed to advance in the House of Representatives.

The American zinc lobby has been a major opponent to any suggestions that the penny be eliminated, just as nickel lobbyists have fought efforts by the U.S. Treasury for years to remove nickel from the nickel. Another advocacy group, this one called Americans for Common Cents, passionately defends the penny.

"Eliminating the penny is a losing proposition because it will result in rounding to the nearest nickel and higher prices for America's working families," a statement on the group's website reads.

"This increased cost to consumers will be felt in everything from the grocery store to the gas pump. Pennies add up to millions of dollars every year for charities across the country. Simply put, the penny plays an important role in our everyday lives and in our nation's economy."

Owen scoffed at one of those arguments.

"This idea that you'll be ripped off by merchants somehow, that they'll charge a few cents more without the penny — it's not the case. Most merchants are happy to round in your favour; they just don't want to deal with the penny anymore."

But he acknowledges Americans have diehard attachments to pieces of currency other countries have long since done away with, noting the lack of love given to the America's version of the loonie.

"One problem here, in addition to the fact that some Americans think dollar coins are a Commie plot, is that they're so close in size to quarters. So they're not widely in circulation, and when people get them, they tend to hold onto them as though they're collectors items," he said.

"There just doesn't seem to be a rational response to currency changes in this country like you see in other places."

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WASHINGTON - News that Canada is doing away with the penny has renewed debate in the United States about whether it's time to rid itself, too, of a piece of currency once described by an esteemed Amer...
WASHINGTON - News that Canada is doing away with the penny has renewed debate in the United States about whether it's time to rid itself, too, of a piece of currency once described by an esteemed Amer...
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HUFFPOST SUPER USER
PatientZeroBeat
Dying since 1962
09:44 PM on 03/31/2012
"Eliminating the penny is a losing proposition because it will result in rounding to the nearest nickel and higher prices for America's working families," says The American zinc lobby.

First, the rounding can be as often DOWN as it is UP. But even if literally every transaction rounded UP, it doesn't amount to a hill of beans. Let's say you did 2000 cash transactions a year (that's rather improbable) and you paid an extra 4cents on every transaction, it would only be $80 in a whole year. But it wouldn't even be this much, because it could be 1, 2, or 3 cents... or it could be 0 cents extra per transaction.

The Zinc lobby is hoping that there's a lot of math-challenged Americans out there to be scared. I've seen that statistics.... there are indeed a lot of them so they're not being irrational with their fear mongering calculation.
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PatientZeroBeat
Dying since 1962
09:31 PM on 03/31/2012
The champions of illogic and useless tradition helped prevent America from moving to the Metric System (unlike the vast majority of the world), so I guess they'll be in full force this time trying to "save the penny".
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HUFFPOST SUPER USER
greysells2
grey cells matter
03:41 PM on 04/03/2012
Is America looking in the rear view mirror? Rather than toward the future?
05:01 PM on 03/31/2012
Well if President Obama is for it .... Cue the house Republicans and TPers complete and utter resistance to following in the wake of those "socialist hordes" from the north.
Placards will be waved. Someone will scream " Freedom" and "hands off my
collection of copper I never actually roll or take to a bank"
Keeping the Penny will become a new rant from Rush, weird old billionaires will suggest women put them between their knees in place of that aspirin.
Cause really that's about the only use left for the sad little penny
Although large numbers if them in a shoebox make an excellent doorstop
This is one thing I can agree with in the Budget
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HUFFPOST SUPER USER
opprobrious
More speech. Less Flagging.
10:26 PM on 03/30/2012
Have to wonder how purest libertarians are taking this. On the one hand it's saving them money but on the other it may make paying directly in cash a bit problematic.
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PatientZeroBeat
Dying since 1962
09:28 PM on 03/31/2012
Huh? Just round to the nearest nickel. Much of the time I buy something with cash it's done that way already anyway.... either they give me back a penny or 2 extra or I pay a penny or 2 more.
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HUFFPOST SUPER USER
opprobrious
More speech. Less Flagging.
02:16 AM on 04/01/2012
Okay so you're in favor of increasing the seller's margins out of convenience?
09:31 PM on 03/30/2012
"once described by an esteemed American publication as "horrid and useless" Post who it was please. The americans should have been doing this with us as a partner. Beyond getting rid of the penny it makes financial "cents" to replace the dollar bill with a coin. From an economics point of view it would be a huge plus to the taxpayer
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Mike vdB
Get involved, always question, don't just exist.
02:38 PM on 04/01/2012
While it would have been a great idea to partner with the Americans on this one but if we waited for them to make a decision, we would never get anything done. Also I think because this wasn't their idea to begin with they will end up dragging their heels to follow suit. We always have to jump when the US does something (i.e. DST changes) but it doesn't happen the other way around. Maybe someday there will be true partnership.
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greysells2
grey cells matter
03:45 PM on 04/03/2012
Don't hold your breath. America apparently does want to lead the world but it does not want to follow either. How is that going to work out?
08:51 PM on 03/30/2012
Australia got rid of their penny years ago.
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MyTake
Release the Hydrogen Economy now!
08:35 PM on 03/30/2012
The year was 2000 when the EU was established with its common currency.

The year was 2003 when that "armed encampment" took place in Quebec City and was called The Summit of the America's.

The Union of the America's (stage two of global governance) was scheduled for 2005 but the southern side of the America's turned thumbs down even though the AMERO currency was already printed and warehoused.

So, Harpo should assert himself now that the Canadian dollar is on par with the American dollar.

Harpo should demand that our NAFTA partner to the south abandon this copper colored "pocket shrapnel" or he will CANCEL that FIGHTER JET contract!

With this single act, Canada just catapulted itself to the forefront of the G-20.

I hope 7-Eleven will now be the first chain that immediately POSTS signs saying they will not distribute or accept this coin!
05:57 PM on 03/30/2012
Instead of getting rid of a denominations - a rather sad acknowledgment that the money in your pocket continues to lose value - we should focus on the problem to begin with - inflation - starting with the problem of having a currency that is a derivative of debt.

So what's next? Nickels?
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Warren Yuill
Jesus Built My Hot-Rod
03:41 PM on 03/30/2012
I costs more to make a penny than its face value.