Philip Diehl, also known for having been the U.S. Mint Director in the past, was recently interviewed and talked about information concerning the penny and why when you see a penny, it is no longer necessary to pick it up. Mr. Diehl is actually one of the many people who are trying and have tried to get rid of the penny.
U.S. Money Reserve, right now, the current issue at hand is the well-known fact that states that the penny we all have used for a long time now is costing the world more to make than it is actually worth in value. When it comes to pennies, it might come as a shock to most to hear that the U.S. Mint actually has losses of over millions in dollars every year through the process of producing the pennies, the pennies actually cost 1.8 cents in total for producing them.
There are people however, who believe that raising the price of pennies will cause prices to become distort and there to be some chances of inflation. However, Philip believes that there is not much to go on with that assertion. Philip says that there are two types of transactions that go on now a days, and neither of them have to do with pennies which is said to be affecting the US Reserve, one is paying with cash, which accounts for around 25% of the transactions made, and the other is in electronic form, which accounts for around 75% of the money that comes in from purchases.
Mr. Diehl believes that only a tiny portion of the transactions would actually notice any difference when the penny finally did become out of use. He also believes that the companies are more likely to lower their prices, rather than raise them because of the loss of the penny.
There are some people and companies who believe that a few cents would make the difference, but Philip thinks that no one will actually notice that much of a change. In 2010, there was a request from Congress, which was asking to find ways to make coins at a cost that would be lower, however, this ideal was immediately knocked out of the picture, even though many countries have been making their coins more economic. Philip Diehl wants the penny to get taken out completely, however, he has no hope that there will be much change, being that it is already 2016 and we are still using the same old penny and wasting money just to make it.No Comments on US Money Reserve: The Demise of the Penny, an Interview with Philip Diehl