Wait a second!
More handpicked essays just for you.
More handpicked essays just for you.
Inflation it's effect on economy essay
EFFECTS OF inflation in the economy ESSAY
Effects of inflation on the economy
Don’t take our word for it - see why 10 million students trust us with their essay needs.
Recommended: Inflation it's effect on economy essay
The penny was the first form of currency in the United States, it was first minted in 1787. Since the first minting in 1787 “Over 300 billion one-cent coins, with 11 different designs, have been minted since 1787”(pennies.org). The first pennies were made of one hundred percent copper and the metal composition is going to drastically change over the years, by 1856 the composition of the penny changed to eighty-eight percent copper and twelve percent nickel. In 1864 the composition of the penny changed again to ninety-five percent copper and five percent Zinc and stayed that way up until 1982 when the composition of the penny change to what the penny is made today ninety-seven and five tenths and two and five tenths copper plated zinc. There …show more content…
In 2016 each penny cost 1.7 cents to produce so to produce one dollar it costs a dollar seventy. Minting these lower denomination coins cost the government more than what they are actually worth. The U.S Mints have tried to use cheaper metals to be more cost effective at making the coinage, but they are still not able to bring the cost of the coin to what the coins are actually worth. “ In 2014, the Mint shipped out more pennies than nickels, quarters, and dimes put together – over 7.9 billion coins. That adds up to a loss of over $55 million for that year alone”(moneycrashers.org). That is 55 million dollars lost in that year alone because the production costs outweigh their face value, the penny isn’t the only coin that costs more money than their face value to produce the nickel costs eight cents to produce. Compared to the penny which costs a dollar seventy to produce a dollar's worth, the nickel costs a dollar sixty to produce a dollar's …show more content…
The first reason that the U.S would keep the penny is that they do keep prices low if the U.S were to get rid of the penny all prices would be rounded to the nearest nickel which would result in losses to the consumer up to three cents. The merchants would always raise the price to benefit themselves rather than the consumer, there is no way to make these business owners round down because they would have changed the price before the concept and the rounding would be initiated. The statistics also show that “ incomes under $10,000 non-whites and Hispanics, and those adults with less than 12 years of education pay for more than half of their of their total purchases in cash.” Getting rid of the penny would hurt the lower class more because they use more money for purchasing, this is an unforeseen circumstance that will have a great effect on the lower
In fact there are many people that oppose abolishing the penny. In source E it states “that 62 percent of people oppose abolishing the penny that has a income less then $25,000 a year.” If the penny was to be abolish then the nickel would be the lowest coin in amount of money. If the nickel was the lowest amount of money there was then that means the purchase prices of items sold would increase. The prices would increase on items sold because the penny would not be in circulation to allow the customer to pay with the correct amount of change. Instead of being able to pay $3.47 for a kids meal at MacDonalds the customer would have to pay $3.50 for the kids meal. With the increasing prices of merchandise sold in stores there could be a budget upset for many families that have to follow a tight budget. Many families have to follow a tight budget to be able to provide for there families. With a tight budget there is no room for the prices of merchandise to increase due to losing the penny. Every penny counts when it comes to having a tight budget and providing for your
We should keep the penny because it has history, in fact it was “the first currency authorized by the United States” (Lewis). The penny no longer has the value that it used to have, but it is still necessary to make purchases as accurate as possible. The penny may seem like a waste of time to many Americans because it takes so long for cashiers to make change, forcing people to wait in line, but it is actually worth the time spent. The penny helps with keeping prices a cent lower, and therefore stimulating the economy. The penny is important to many people who need the money and for whom pennies still have value.
Throughout the past decade, costs of everything have skyrocketed. According to Source C, America used to have “five and dime stores;” now its a dollar store. In addition, no one can buy anything with just a penny anymore. The source also made a fair observation that these worthless zinc disks are, “behind chair cushions or at the back of sock drawers next to your old tin-foil ball. Quarters and dimes circulated; pennies disappear because they are literally more trouble than they are worth.” According to a New York Times article, “it takes nearly a dime today to buy what a penny bought back in 1950.” The penny is still stuck in the 1950s while America just keeps moving on. As stated by Mark Lewis in his concept of establishing a bill, “the bill would not ban pennies, but merely discourage their use by establishing a system under which cash transactions would be rounded up or down.” (Source A) This motive will help keep the America exceed and
Do we really need pennies? The story of the penny starts in 1792; it came with several different coins including the dime, nickel, quarter, and half penny. The pennies were first made out of 100% copper, but the price of the copper went up, because of inflation, the power of the penny went down. The cause of the mint is to reduce the amount of copper in pennies first from 100% to 95% but then to 5% copper and 95% zinc. Despite the debate in 2006, the value of metal on older pennies rose over one year.
According to source #4, it states, “The one cent has influenced our language, giving us a number of idioms, such as ‘a penny for your thoughts’ (a way to ask what someone is thinking) and ‘not one red cent’ (meaning no money at all).” This is significant because it shows that the penny has affected the English language, giving the language more idioms to use. It is often said that pennies should not be manufactured anymore due to their excessive cost of manufacturing and distribution. Yes, numerous people do acknowledge that fact, but the government can also propose that pennies are to use inexpensive metal, like steel, which makes the entire coin industry save money and has the cost of coins to be cheaper to make.
Have a good look at the penny, what do you see? You probably see nothing but a copper coated circular poor valued cent. Little does everyone know pennies have been around longer than before their grandparents, even their great-grandparents! Matter of fact, it was around so long ago that Abraham Lincoln’s face was not the first design on the penny. I ask that you take the time to consider the American penny’s worth. Without the people’s belief in its value, the penny will be abolished. I see people every day throwing away a penny rather than to put it in their pocket and save it for future uses. Yes a penny is "outdated, almost worthless, bothersome and wasteful" (Safire) piece of junk, but it's has an economic, cultural, and historical significance to the United States of America. The problem is that nobody pays attention to that, and that gives pennies the image of no value. Three good solutions to show the pennies worth include: tolls and vending machines accepting the coin, more charities to keep their penny drives, and historical evidence of what the penny mean to America so that it can be passed on to the future generations.
"As of 2014, the cost of making a penny was estimated at 1.7¢. So yeah, it almost costs two pennies just to make one penny- which makes no sense (pun intended)". Over time, many people have called for the U.S. to stop making pennies. Three reasons why are, we have a lot of coins and bills, not many people carry around cash, and making pennies can waste time, money, and minerals. That is why I believe the U.S. should stop making the penny.
Millions of Americans work full-time, day in and day out, making near and sometimes just minimum wage. In 1998, Barbara Ehrenreich decided to join them in part by the welfare claim, which promises that any job equals a better life. Barbara wondered how anyone can survive, let alone prosper, on $6-$7 an hour. Barbara moved from Florida to Maine to Minnesota, working in the cheapest lodgings available and accepting work as a waitress, hotel maid, house cleaner, nursing home aide, and Wal-Mart salesperson. She soon realizes that even the lowliest occupations require exhausting mental and physical efforts and in most cases more than one job was needed to make ends meet. Nickel and Dimed reveals low-wage America in all of its glory, consisting of
Many of Americans view the every day penny as only one cent that carries only little to no value, which is why they wind-up stashed away at the back of drawers. What most people don’t have a clue is the value it once held back in the days where a can of coke was about one cent. Our very own citizens who once fought battles and came home scarred knew that the penny wasn’t just one cent, it was the blood shed, their fallen brothers, and the never ending tears that symbolized one single Lincoln. Pennies are worth more than their currency, they are the history of our home and the beginning of where we stand today.
In America’s modern day economy, the penny is very useless and irrelevant in our society today. As source C states, “The time has come to abolish the outdated, almost worthless, bothersome, and wasteful penny.” There is not one item that can be purchased with a penny anymore (Source C). As source C states, “it takes nearly a dime to buy what a penny bought back in 1950.” Stores such as the Dollar Store prove how the cheapest items you can purchase are with only a dollar, not a cent. Pennies are shoved out of the economic picture by credit cards and because of the modern-day technology, there are even self-service machines that help convert coins into paper money (Source B). Furthermore, pennies are easily tossed into piggy banks or appear behind chair cushions. It is not used the same way as it was before.
Now a day, people do not even bother to pick them up when they see them on the street, the unit of a penny is too small to be useful. The one cent coin should be eliminated because they cost more money to produce than what they are worth, “A penny currently costs the United States government 2.4 cents to mint. Yes, that's right—the penny costs more to produce than it's worth! One-cent coins constitute a complete and utter waste of taxpayers' dollars—not to mention a waste of our time and energy,”(Prairie News Register, P.1 ). This shows that if the penny gets eliminated from the United States it will save more time and money. The Penny also means very little to society because when someone sees a penny on the ground they rarely will pick it up. “Production is up in part because of hoarding, and in part because more and more people are throwing them in jars or drawers and never taking them out again. Few people now bother to pick up a penny when they see it on the street. It's simply not worth the effort,” (John Fund, P.2). This evidence shows how picayune the penny is and how people do not really bother for pennies
There is definitely no purpose and meaning in continuing the creation of these worthless objects. All they do to the United States is cause trouble, and they are clearly a bothersome to uphold them in our possession since they barely contain any value. Our economy would be fit with just dimes, quarters, and nickels as our coins. Abraham Lincoln, who was the president represented in this penny, would disapprove having his reputation and honor shown in a futile currency. The government needs to stop producing pennies. They create a loss of money rather than a profit; therefore, these copper cents need to be gone from our economy. What other choice is available? What can these pennies do in order to redeem their glory? It is nearly impossible to convince residents to use pennies once again. The penny has lost its value, and their dignity has become faint to us. It is time to eliminate pennies–for
This piece of evidence comes from Greg Mankiw in an article by PBS news “It costs the mint well more than a cent to make a penny” (Mankiw) This shows that we should stop producing the penny because it makes no sense to make something that is not worth the money you spent to produce it. Another quote comes from The Washington Post “I am able to report that…drugstore chains have estimated that handling pennies adds 2 to 2.5 seconds per cash transaction. Assume that the average citizen makes one such transaction every day, ...so futzing with pennies costs him $3.65 annually. “ (Mallaby) This quote proves that pennies waste money because by physically paying with pennies you waste money, it might seem like a small amount but with millions living here it adds up. A final piece of evidence is from a PBS newshour article “the government continues to mint four billion pennies every year, even when it costs 1.8 cents to mint one penny. That means the U.S. government pays $8 million more than pennies are worth.” (Solman) This quote shows that the U.S. waste a ridiculous amount of money every year making pennies. The penny should be eliminated because it waste our money even though there are some
The penny has been in America for centuries, it's a sentimental object for Americans everywhere. However many have debated on whether or not it should be eliminated or continue being made. The penny should be preserved because it is apart of American culture, given to charity, and keeps items cheap.
This meaningless coin is losing money to the mint, and should be abolished. The penny costs 1.4 cents to manufacture each time at the mint. This is causing the mint to lose money to the treasury. Last year, the mint earned $730 million in profit. Many mint officials claim the estimate will be about $45 million due to the cost of metals made in pennies.