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Counting Pennies

  • Writer: InkSociety
    InkSociety
  • Dec 30, 2020
  • 2 min read

By Joseph Kim

Cypress High School


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The US has been enduring a coin shortage for the past several months. This shortage has proved to be problematic and has spurred creative programs to encourage coin circulation. These programs include giving out free goods for coins, mailing coin sparse friends, and family loose change. However, it does seem as if these solutions are not suitable for the long term improvement of the shortage. In order to create effective solutions, we need to understand how we got into this conundrum in the first place. With economic activity being stunted when COVID-19 hit US shores, many people have stopped using coins in daily transactions. This affected the US mint as they scaled back on workers, which also did not help with the shortage. Additionally, the rise of virtual payment methods further disincentivized the use of coins. All of these factors contribute to the fact that millions of coins were effectively not in circulation. The shortage posed a serious problem for banks, business owners, and everyday people alike. Only when coins were sparse did we realize how important they are. Trivial events such as using the laundry machine to more significant problems such as banks running out of coins are all problems that were brought on by this shortage.


Perhaps the only long term solution is to encourage individuals to start using coins. If individuals start to put hoarded coins back into circulation then the coin shortage will surely be alleviated and in time eliminated. This will naturally reintroduce hundreds of thousands of coins back into circulation. The solution circumvents inflation and mass government programs such as increasing coin production. However, we need to also think about the future of money shortages. Long term solutions to make problems such as this less common must be discussed. These solutions for the future address a bigger question of electronic payment methods or cash. As cashless payment options become prevalent, it is important to recognize the place for paper money and coins in our economy. Electronic payment methods are convenient, but there are significant risks to a cashless society. Security breaches, technical inconsistency, and fraud are all realistic threats that undermine electronic payment methods. We must not compromise the safety of cash for the convenience of cards. It is important for people to utilize both physical paper money and coins as well as electronic payment methods so that we can have a safe and convenient economy.


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