Make a list of the points on each side of the debate. What are two arguments for keeping the penny? What are two arguments for eliminating the penny?
Arguments for keeping the penny:
1. Historical and sentimental value: The penny has been a part of American currency for over 200 years and has cultural significance. Many argue that eliminating the penny would be an erosion of history and tradition.
2. Psychological pricing strategy: The penny allows for pricing goods and services at a fractional level, such as $9.99 instead of $10. Proponents believe that this pricing strategy influences consumer perception and encourages purchasing behavior.
Arguments for eliminating the penny:
1. Cost of production: Minting and distributing pennies costs more than their face value. The production of pennies has become financially burdensome, especially since the price of the raw materials used exceeds the penny's value.
2. Reduced purchasing power: With inflation and the decreasing value of money, the penny has lost its practicality. Many argue that it has become obsolete in everyday transactions and eliminating it would simplify monetary transactions.