There is an on going debate on the value of the penny an whether or not it should be removed from the press. An interview of Philip Diehl, president of US Money Reserve shown on CNBC Squawk Box deals with whether or not it is a good idea to remove the penny from the press and the potential consequences that can occur with the removal of the penny.
It is a controversial topic with people on both sides of the debate making predictions about the possible consequences that could result from the removal of the penny. Philip Diehl himself is in favor of getting rid of the penny due to the cost of producing it.
The side against getting rid of the penny voice concerns particularly of the elimination of the penny being the cause of inflation due to the need to round up to the nearest ten. In other words, prices like $4.99 or similar prices would rise up to a full $5.00. This is a major concern for people who oppose the elimination of the penny. Admittedly, this is only speculation on their part. The side that is in favor of eliminating the penny from the press offers a compelling argument.
Philip Diehl himself says that the retailers and food companies care enough about the customers to avoid angering them over a penny. For one thing, they may round the costs down a few cents to the next available coin value. He also points out that the penny costs a lot more to print than they are worth, Getting rid of the penny would save a lot of money. He also notes that the material of the penny has changed over time.
Both sides present a compelling argument. One thing is certain, they are considering getting rid of the penny. It is only a matter of time before they remove the penny from the mint.