The canadian penny debate essay

The Canadian Penny Debate Essay

The canadian penny debate essay

Should We Keep the Penny or Get Rid of It? - 4. Should We Make Cents - 60 Minutes 5. The American Penny: How It's Stuck Around All These Years-US News 6. Why Keep the Penny? - AMAC 7. Don't You Dare Eliminate the Penny - Forbes 8. Why We Need to keep the Penny (and Dollar Bill) in Circulation - Sunshine State News 9. ” It’s been our smallest-denomination coin for years. But if people are leaving pennies at the cash register, is it time to get rid of them? In this essay I am going to argue why we should keep the penny and why people think the penny should stay in route with the rest of the coins. A Penny Saved Is A Penny Earned Essay - FRUGALITY “A penny saved is a penny earned” this was one of the Franklin’s thirteen virtue that was meant to make people aware about frugality and thrift and help them to manage their economic and financial status. The Royal Canadian Mint says it costs only cents to make a penny but if you factor in other costs such as shipping the pennies to banks then it could add up to 4 cents per penny. Surely we have to get rid of this nuisance by proposing a bill to abolish the penny in Canada. This was my best essay out of the year. The only major revisions I made to this essay was a few grammatical errors and a more creative title. The penny, at this point in time, manages to be both extremely useless and impractical, it is a Congressional gaffe that the penny is still being made. Making the penny is not cost effective, and.

Act of , that would stop minting of the penny for ten years and would study the question of whether production could cease thereafter. Since March 29, , S. The price of the raw materials from which the penny is made exceed the face value, so there is a risk that coins will be illegally melted down for raw materials.

Thus, it is not worthwhile for most people to deal with a penny. The Federal Reserve says that replacing one dollar bills with one dollar coins would save an additional five hundred million dollars per year.

Abolish the Penny essay

Economist Greg Mankiw says that "The purpose of the monetary system is to facilitate exchange, but This contributes to the United States Mint needing to produce more pennies than all other coins combined. Rounding down cash transaction totals is a win for the merchant too as it encourages cash sales and thereby avoids the electronic payment fee typically in the order of two percent of the balance as often. When told of the savings made by suspending the penny, support jumped to 84 percent.

Due to inflation , one nickel in was worth approximately what a penny was worth in A single penny can kill a pet. Store employees spend valuable time counting low value pennies at the end of a work shift. Banks often return loose coins on an armored truck to be sorted and wrapped so as to be ready to be given out to a customer. This process costs on the order of ten cents per roll a hefty twenty percent charge on a roll of fifty pennies. The paper stated that rather than eliminate the penny, it could make more sense to change the composition of the penny to a cheaper metal than zinc if the costs of zinc do not come down and there continues to be a significant loss per penny.

According to Americans for Common Cents' website, "First, the Mint's fabrication and distribution costs include fixed components that will continue to be incurred whether or not the Mint produces the penny. Second, under current Mint accounting, the nickel costs eleven cents to manufacture.

The canadian penny debate essay

Federal Reserve studies have shown that people with relatively low incomes use cash more frequently than individuals with higher incomes. Since only cash transactions will be subject to rounding, a study indicates that any move to eliminate the penny may disproportionately hurt "unbanked" Americans who have no other option and lack the means to make non-cash transactions.

Should We Get Rid of the Penny? – 8 Reasons to Keep It vs Eliminate It

The study, authored by Raymond Lombra , concluded that eliminating the penny would impose a "rounding tax" of at least six hundred million dollars per year on American consumers. The current face value of a nickel is also well below that which the lowest-denomination coin the penny held at the time of the half-cent's elimination in Lobbying[ edit ] The sole provider of zinc "penny blanks", Jarden Zinc Products of Greeneville, Tennessee , has hired lobbyists to make the case for preserving the penny and their sales.

Velde has suggested an alternative plan in which the government would make the penny worth five cents.

The canadian penny debate essay

This change would cause an inflation of nearly six billion dollars. Withdrawal of low-denomination coins Many countries outside the United States have chosen to remove low-value coins from circulation: Australia discontinued one-cent coins in and two-cent coins of the Australian dollar in due to the metal exceeding face value and were withdrawn from circulation in However, on March 29, , the Canadian government announced that it would eliminate the penny from its coinage system.

In , new coins were minted only for the ten, twenty and fifty centavo denominations. In some cases, while the nominal value of the coin may be smaller than that of a US cent, the purchasing power may be higher: Some countries in the Eurozone use one and two-cent coins. As posted prices generally include taxes, it is possible but not standard for vendors to round prices to the nearest five cents and eliminate the need for smaller-value coins.

Penny Argumentative Performance Task Essay

However, Finland , Ireland and the Netherlands have abandoned the use of one and two-cents altogether. Finland only ever produced a small number of one-cent coins, mostly for collecting and legal reasons. Panama and Ecuador , which use the United States dollar as their currency, mint their own coins including one-centavo pieces identical in size to the penny. However, prices and wages are generally lower in those countries compared to the United States.

Laws regarding melting and export[ edit ] On April 17, , a Department of the Treasury regulation went into effect prohibiting the treatment, melting, or mass export of pennies and nickels. Exceptions were allowed for numismatists , jewelry makers, and normal tourism demands. Because their silver content frequently exceeds collector value, silver coins are often sold by multiplying their "face value" times a benchmark price that floats relative to the spot silver price per ounce.