Abolish The Penny Essay

If that is the case, then people would be less willing to part with spare change for charitable drives.

If the penny is discontinued, then merchants must round all prices.

Despite this debasement, in 2006 the value of the metal in older pennies rose over 1 cent and suddenly they were worth more dead than alive so people melted them to sell the raw copper for profit. coins illegal and continues to manufacture 4 million pennies each year.

In a rational, efficient world, the story of the penny would have ended here with the Government realizing that they weren’t worth Minting and happy that its citizens were removing them from circulation. Which is idiotic as it costs the US Mint about 1.8 cents to make a each 1 cent penny.

Charities benefit from spare change because, since people do not care about it, they are more likely to give it away.

Charities worry that if the nickel becomes the smallest denomination, then people will value change more.The value of copper went up and, because of inflation, the buying power of the penny went down.This caused The Mint to reduce the amount of copper in pennies, first from 100% to 95%, and then to only 5% copper and 95% zinc.It is unclear whether the rounding would be up or down.Proponents of the penny argue that shopkeepers would tend to round up, increasing prices.The impact of the loss of the penny on price flexibility depends on its implementation.If only cash transactions are affected, then electronic transactions will continue to deliver more sensitive data.Now, if you want to spend pennies, you’re going to have to put in some effort.For example, try to pay for 20 bucks worth of groceries with 2,000 pennies weighing 11 pounds and see how that works out.To get the price just right the cash must be divisible into pieces so that you don’t overpay.But it isn’t divided forever, because at some point the value it represents is too small to buy anything or bother with. In the olden days, pennies could actually buy stuff, no more.

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