According to an interview done at the CNBC Squawk Box of the US Money Reserve President, Philip Diehl about the demise of the penny, he firmly believes that it should remain dormant this is because it does not play a vital role in the daily business transactions. To make it worse, he says that the penny lost its usefulness over 25 years ago. Therefore, the manufacture of the Penny proves to be a liability to the economy because instead of generating profit it causes high losses. The capital used to produce it is more than the profit realised. The penny does not even qualify to be in the stock market ranking due to the loss of its worth over the years.
Philip Diehl comments and says that it lost its popularity among the citizens to the point that nobody uses it anymore hence most people ignore it even if they found it lying down in the streets. He says that for those who take it, it must be less than their minimum wage for their trouble pun intended. Despite all that the interviewer mentions that some economists insist that if the penny is wiped out of the economy then, it could inevitably lead to inflation. The Us Money Reserve President then says that due to technological advancements most transactions are done electronically. Therefore, the penny elimination will not affect much.
The greatest lobbies for the stay of the penny is the zinc industry as the penny is made of 97.5% of zinc. Hence, they make the most profit and the Illinois congregational delegation that protects it as it is the seed on American coinage featuring Abraham Lincoln. Fortunately due to the competition in the marketplace, it will discipline companies not to increase prices hence prevent exploitation of customers. In addition to that, elimination of the penny will enable the money reserve to save up to 105 million dollars annually. In conclusion, Philip Diehl is sure that demise of the penny brings good than harm as there is no hope for it.