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Elon Musk, a billionaire entrepreneur and a member of the cabinet, known for his revolutionary and devastating innovations, including Tesla, Spacex and Neuralink, recently loudly in connection with his belief that they would need the US eliminate the penny.
Although it is not the first person to advocate for this change, the man’s influence and the open nature have attracted renewed attention to the debate about whether the coin still has a place in the modern economy.
Case against pen
Argument for Release the pen Not new. Economists, policy creators and financial experts have long discussed its convenience. The last time I remember using a penny was in the store with a meal “Give a penny, take a penny”.
Economists, politics and financial experts have long discussed the convenience of pencils. (Getty Images)
Here’s why Musk will be the ultimate momentum in removing the trifle (and perhaps other coins) from our daily life.
1. The penny is worth less than the cost of production
One of the most convincing reasons to remove the trifle is that it costs more production than the nominal value. According to the US mint, it costs about 2.7 cents to produce one pen. Talk about Doge!!
This means that taxpayers effectively lose money every time a new coin is forged. The US government consumes Hundreds of millions of dollars The production of little things that are difficult to use in daily transactions. Doga said on X that in 2023 that number was 179 million.
Musk, who has built his career to optimize efficiency – whether in electric vehicles, space trips or AI – he sees it as an obvious loss of resources. And you know what, it’s right!
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This is a new government of common sense. From a business perspective, it is a little sense to continue producing an item that costs more than it is worth.
2. The pennies are economically ineffective
In addition to production costs, money slows down transactions. Whether at the box office, a sales machine or a collected cabin, handling money takes time. Companies and consumers spend the countless hours of each year counting and involved in these low -value coins.
By removing a Almost worthless denominationCash transactions could move faster and use companies and customers. Most people thought the checks would be outdated at the moment, but people still use them. But certainly, most people know that penis has no place in our daily lives.
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3. Inflation made a penny of obsolete
When Penny was first introduced in 1793, he had a significant purchasing power. He buys almost nothing today. Inflation eroded The value of Penny to the point where many refuse to pick it up from the ground.
Elon Musk arrives to speak at an event in a closed presidential parade in Washington, DC, on Monday, January 20, 2025. (AP Photo/Matt Rourke)
In an era dominated by digital payments and credit cards, Penny’s role in the daily store decreased. There is a reason that Dollar Tree barely has anything more that costs a dollar.
Society develops with technological progress and many forms of digital payments. Most people use credit cards, debit cards, Venmo, Zelle, PayPal and possibly crypto currency in the future.
What can you really buy for a penny? When I was 20, there were 12 CDs from Columbia House. No longer.
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MUSKO’s influence and reaction to the public
Why is Musk leader to make this change? For one thing, his opinions carry weight, social and political. As the Tesla CEO, Spacex, Neuralink and the second venture, he has a huge pursuit. When he talks about a question – even one as seemingly less as eliminated a coin – people pay attention.
Elon Musk arrives on New Year’s Eve at the MAR-A-LABRA club on December 31, 2024 at Palm Beach, Florida. (Eva Marie shouting/Getty Images)
Musk used social mediaespecially x (earlier Twitter) to express his thoughts on various economic and financial topics. Its influence could help the policy makers to seriously consider removing the trifle, especially if it still emphasizes its inefficiency.
However, not everyone agreed with a male. Some Americans have a sentimental attachment to a penny, especially because of historical importance and connection with President Abraham Lincoln. Others care that the elimination of the trifle could lead to the fact that traders round out prices and not reduce, effectively increasing the costs for consumers.
What would happen if Denny eliminated?
If they were now following a Musk’s proposal and got rid of the little things, several changes would occur:
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Rounding transactions: Prices would probably round up to the nearest five cents. Studies from other countries As Canadawho eliminated their coin in 2013, they showed that this rounding was balanced, which means that consumers do not lose significantly.
Reduced production costs: The government could save millions of dollars every year stopping the production of pencils.
Faster transactions: Buying cash would be faster without the need for the number and distribution of little things.
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This should happen in the next four years
Call of Elona male In order to remove the penny, it is rooted in logic, efficiency and financial pragmatism. While the penny once served a meaningful purpose, inflation and technological progress made it largely irrelevant.
Whether the policy creators will act on this question remains to be seen, but Mušk’s influence has prevailed a conversation about whether it is time for Penny to become a thing of the past.
