Reference no: EM13780712
In a brief essay of 500 to 700 words, describe and explain the controversy surrounding the penny, and then tell your thoughts on the matter. Include information from a reading material, a short passage and a short video, and you need to help me write an essay about it.
Economists have proposed eliminating the penny as a means of reducing government expense, yet they fail to realize the effect this would have on America's most destitute. First and foremost, getting rid of the penny would result in price rounding. Thus, for example, a quart of milk that costs $1.18 would be rounded up to $1.20.
It might seem that price rounding works both ways, but the reality is that merchants set prices so that the rounding ultimately works in their favor. The end result is that the price of everyday goods increases, and poor families have that much less food to put on the table.
The other problem with eliminating the penny is that charities depend on it. Pennies are, as one might imagine, the most frequently donated coin, and charities receive tens of millions of dollars each year in pennies alone.
Basically, keeping the penny in circulation can prevent inflation, promote charity, and do a service to America's poorest citizens.
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