Thursday, August 20, 2009

4. Saving the Economy, One Penny at a Time

Pennies these days are something like 95% Zinc with only 5% copper that makes up the shell. Pennies these days are only worth 0.4 cents (source) and cost 1.2 cents to make.

Pennies from before 1983 are something like 95% Copper with only 5% zinc.
Pennies from before 1983 are worth about 1.8 cents.

I propose that the government recalls ALL pre-1983 pennies and reimburses the donors with 1.2 cents per donated penny. Why?

First of all, it would appease all the "death-to-the-penny" groups out there and satisfy all their reasons for ending the penny.

Next, everyone would make out. First of all, the big brother'd be buying copper at a 33% ((1.8-1.2) / 1.8) discount, which they could either use to lower the cost of producing new pennies, or resell the material to remelting plants and/or their consumers - the ailing auto industry, for example - at a 10% discount. Secondly, they citizens selling them would be making 20% on their "investment" ((1.2-1)/1). Everyone would make money.

Anyway, this isn't really fleshed out, or even fully thought out yet but right now it seems like a halfway decent idea.

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