Philip Diehl, the previous director for the U.S Mint, has a different opinion when it comes to the penny. He advises people who come across it to ignore it rather than bend to collect it. According to Philip, the penny will actually bring less than your minimum wages.
Currently, Philip Diehl is the president of the popular coin distributor known as now the U.S. Money Reserve (follow them on Twitter). The firm is also supporting the idea of getting rid of the penny. Philip has been doing this campaign for some time now. He started the initiative during his time at the 35th director at the U.S Mint.
The greatest challenge that faces the coin is the fact that it actually costs a lot more to produce it than its normal value. The firm is producing it, the U.S Mint experiences millions of dollars as losses every year.
Several people in the US believe that getting rid of the coin will not be a good idea. They think that there will be mild inflation or even distortion of prices if this happens. However, according to Philip, this will not happen.
According to Philip, this argument has been in existence for over 25 years for the penny supporters. They believe that it is impossible to do way with the coin. What these supporters do not know is the fact that about 25% of the current transactions are done in cash, while the rest is done in advanced electronic forms.
The absence of the penny will have very little impact on the state. In fact, the percentage that will be affected is very little according to Philip. Companies are also expected to bring down the prices of items instead of disappointing clients by increasing them. No company would like to irritate their committed customers just because of a penny.
The group that supports the use of the penny know the Americans for Common Cents thinks that the US government is bound to incur some costs when the elimination of the penny happens. They also argue that charities would suffer because of the reduction in the pocket change distribution. They also believe that the consumers will experience rounding tax due to increased prices from the retailers.
Source: CNBC Squawk Box