Penny Argumentative Essay

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"They build up in piles in old cookie jars... in our desk drawers. You cant give them away"(Remiorz). The penny was first minted in 1787 and over three hundred billion of them have been made since then.In 2016, the penny has long outlived its usefulness. The little one cent coin have become a drain on the economy over the last several years. The opposition of the removal of the penny is on baseless arguments. The penny has needs to be retired because of it has no buying power, the high production cost wastes millions and causes a burden on tax payers, others have done it with positive results, the prices post-penny and rounding policy benefit consumers, and charities will not suffer.

Today's penny have next to no buying power. The purpose …show more content…
Cash transactions that end in 1,2,6, or 7 would be rounded down to the nearest 5 cents and transactions that end in 3,4,8, or 9 would be rounded up to the nearest 5 cents. For example if a transaction came out to $1.89, the prices would round up to $1.90 and alternatively if a the price came to a total of $1.56 then it would round to $1.55. Many worry that a "rounding tax" will make prices increase for costumers. Francois Velde, a senior economist at the Federal Reserve Bank of Chicago and Bank of France, says "In a competitive market , you might well see price decreases" (Sommer). Robert Whaples, a professor of economics, calculated over 200,000 transactions from 20 locations of a gas station and convenience store chain in Alabama, Georgia, North Carolina, Pennsylvania, South Carolina, Tennessee and Virginia to study this "rounding tax". What he found is that "the number of times consumers' bills would be rounded upward is almost exactly equal to the number of times that they would be rounded downward". He also compared a store in a wealthy neighborhood to poorer neighborhood and found that rounding has the same effect regardless of socioeconomic status (Barrett). Whaples also found that consumers even earn a net gain per 40 transactions. The rounding policy benefits the consumer
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