sueddeutsche.de
US Abolishes Penny Production; Germany Debates Similar Measure
The United States will stop producing one-cent coins in 2024 due to high production costs exceeding their value; a similar debate is ongoing in Germany, where 61 percent of Eurozone respondents in a recent Eurobarometer survey support abolishing one- and two-cent coins.
- What are the immediate consequences of the US decision to stop producing one-cent coins, and how might this affect other countries considering similar measures?
- The USA will cease production of one-cent coins starting next year due to high production costs exceeding the coin's value. This decision is projected to save $56 million annually. In Germany, a similar proposal to eliminate one- and two-cent coins through rounding at the checkout is under discussion.
- What are the economic and environmental arguments for and against eliminating one- and two-cent coins in the Eurozone, and what role do consumer preferences play in this debate?
- High production costs exceeding the face value drive the US decision to discontinue the penny. This mirrors concerns in Germany, where the Bundesbank highlights the economic and ecological burden of producing and managing low-value coins. A significant portion of these coins are also lost or saved, reducing their circulation.
- What are the potential long-term implications of eliminating low-value coins for consumer behavior, retail pricing, and the future of cash usage, and what international examples demonstrate the impacts of such changes?
- The elimination of low-value coins, while saving money and resources, could impact consumer behavior and pricing strategies. Retailers utilize precise pricing for competitive advantage, and abolishing small coins might require adjustments in pricing policies. The debate highlights a tension between economic efficiency and consumer habits.
Cognitive Concepts
Framing Bias
The article frames the discussion largely in favor of abolishing small coins, presenting the economic arguments and consumer preferences for abolishment prominently. While mentioning the retail sector's opposition, this viewpoint is given less weight and detail. The headline itself subtly promotes the US decision as a precedent for similar action in Germany, potentially swaying reader opinion before presenting a balanced view.
Language Bias
The article uses largely neutral language. However, phrases such as "kleinste Kupfermünzen" (smallest copper coins) might carry a slightly negative connotation, suggesting the coins are insignificant or bothersome. Similarly, describing the search for the last cent as something that "macht vielen keine Freude" (doesn't bring joy to many) presents a subjective opinion as fact. More neutral wording could be used.
Bias by Omission
The article focuses heavily on the potential benefits of abolishing 1 and 2 cent coins, citing economic and consumer perspectives. However, it omits potential drawbacks, such as the impact on businesses that rely on precise pricing strategies, or the potential for increased prices due to rounding up. The article also doesn't discuss alternative solutions that might balance the cost of production with the benefits of maintaining small denominations. While acknowledging the existence of opposing viewpoints from the retail sector, it does not delve into the specifics of these concerns.
False Dichotomy
The article presents a false dichotomy by framing the issue as a simple choice between maintaining the current system and abolishing 1 and 2 cent coins. It neglects to explore alternative solutions or compromises that might address the concerns of both consumers and businesses. For instance, it doesn't mention the possibility of exploring alternative materials for coin production to reduce costs or adjusting the rounding rules to mitigate price increases.
Sustainable Development Goals
Eliminating the production of one-cent coins reduces waste and lowers the environmental impact associated with minting, packaging, and transportation of these coins. The text highlights the high costs of production exceeding the coin's value, and a significant portion ending up unused. This aligns with SDG 12, promoting sustainable consumption and production patterns by reducing resource depletion and waste.