by Scott Kolecki

Created on: October 08, 2008

Today's economy is no longer one that utilizes paper/metal currency as it's primary means of monetary exchange. While the exchange of money has not yet been eliminated, we are in an economy that is moving towards the expedience of using check and bank cards, which allow for the virtual transfer of funds to pay for the goods and services we purchase. With the cost of living continuously ramping up, this medium of exchange is far more practical than folding large sums of conventional money into wallets or purses or carrying around a pocketful of heavy coins. It is with this rationalization that I most definitely vote "yes" to eliminating the penny.

We live in a world that thinks of things in "dollars", not "cents". When paper currency was developed, the necessity for small amounts of tender was obvious. In colonial America, the penny emerged as a carryover from our English roots. The word "penny" is the singular for the British monetary unit "pence" (which is the plural). Even as late as the mid twentieth century, the penny, or as it is properly called in America, the "cent", had some value as a medium of exchange in daily transactions. There were a variety of goods that could be purchased for a penny, or for just a few cents, and so the need for this tiny monetary denomination was very real. However, as we moved into the last decade of the twentieth century and, even more so, into the twenty-first century, the cost of goods and services skyrocketed everywhere, and the medium of exchange went from mere "cents" to "dollars." Whereas in 1950, five cents might allowed you to purchase a candy bar, or even an ice cream sundae, these same items today easily cost you at least a dollar in most cases and, especially with the aforementioned ice cream sundae, several dollars per item.

As we continue to develop more efficient means of exchanging currency, it is no surprise that the use of paper and metal currency is becoming more obscure. It is probable that within a generation, the use of all "traditional" currency will become a thing of the past. The world is becoming more and more of a global market, and individualized currencies are being exchanged with greater regularity all the time. This process, combined with the simplicity of using plastic currency in place of paper/metal, suggests that not only should we eliminate the penny, but all forms of conventional legal tender. It's just not practical anymore.

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