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.
Here’s the link about the essay http://www.chicagofed.org/digital_assets/publications/chicago_fed_letter/2007/cflfebruary2007_235a.pdf
the reading paragraph :
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.
Thanks a lot
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