Effects of Price Rounding on the Economy

Merchants would have an incentive to set prices that ensure rounding up on single item cash purchases. Consumer inflation hits low income and fixed income groups the hardest.

The effect in dollar terms on the government and private sector could be significant, perhaps totalling over $2 billion after five years. (This is the most conservative estimate possible based on purchases by adults 18 years of age and older. It does not include transactions by the population below 18 -- a group that makes even a larger proportion of expenditures in cash.)

Although rounding might only have a minimal effect on the Consumer Price Index (CPI), in dollar terms even a seemingly small effect could mount over time to a considerable sum given that virtually all government outlays (i.e., social security and welfare benefits) and many private sector costs (i.e., wages) are indexed to the CPI.

Increased prices due to rounding ultimately would fall disproportionately on those least able to afford it, the poor and the elderly, because they make more small cash purchases.

Rounding will have a large economic toll requiring public education programs, retraining of employees, and reprogramming computer cash registers and other automated equipment.

 

President's Day - A Time to Celebrate Abraham Lincoln and Cheaper Pennies

President's Day gives us the chance - at least once a year - to recognize Abraham Lincoln's immense contributions to the country and a legacy that continues to enrich us daily.


President Lincoln is a unique cultural and historical figure," said Mark Weller, Executive Director of Americans for Common Cents. "It's not just that the front of the penny has had Lincoln's image since 1909, it's what Lincoln did for our nation," Weller added "He possessed all the qualities we want in a president -- the ability to unite a divided nation, honesty, strength, and humility," Weller concluded.


For the full press release, please click here

 

Special Announcement!

Pennies for Pasta and Pennies for Patients

These are run by The Leukemia and Lymphoma Society through its local chapters as part of its renamed Student Series program:  www.studentseries.org

For more information, you should call your local Chapter which may be found by going to the Society's website at: www.lls.org

Please note Americans for Common Cents does not get actively engaged in any fundraising activities.

Collapse of the zinc market means the penny is cheaper to make; saves taxpayers!

A collapse in metals prices means U.S. coins, including the penny, are less expensive to make. The penny has reached its lowest cost in seven years. Each 1-cent coin, made almost entirely of zinc, now costs the taxpayer much less to produce and its likely to stay that way for the foreseeable future.

Click here to read more.

More than Two-Thirds of Americans Still Favor Keeping the Penny

Recent Poll Shows Increasing Penny Support and Concern About Price Increases If Penny Is Eliminated

WASHINGTON--(BUSINESS WIRE)--A poll released today by Americans for Common Cents (ACC) continues to show overwhelming and increasing support for the penny by the American public. 68% of those surveyed favor keeping the penny in circulation, representing a slight increase since the last poll in 2012.

"These results confirm the strong and unwavering support the penny continues to receive from Americans," said Mark Weller, Executive Director of ACC. Weller's group includes more than 50 organizations that support continued production of the penny.

For the full article, please click here

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