648 dg wn A GREEK AFFIXES Just as English words derive from Latinand Greek sources, s0 do ‘their affixes, or parts added to the beginnings and ends of words. The affix-ist comes from the Greek ists, which was a suffix that turned words Into nouns. In modern English ist denotes a person who does the activity descrlbed inthe fist part ofthe word, Reread line What Word is derived from “Ist? What does this, word mean? DEDUCTIVE REASONING Reread lines 7-73. What Is the specifi situation Blinder Intends to prove exists? Restate this situation in your own ‘words on your chart | UNIT 6: ARGUNENT AND PERSUASION Abolishing the Penny Makes rad cary by Alan S. Blinder An economist rarely has the opportunity to recommend a policy change that benefits 200 million people, imposes casts on virtually no one, and saves the government money to boot. But Thave such a suggestion to offer the nation as a holiday gift: Lee’s abolish the penny. Yes, the old coppethead has outlived its useful- ness and is by now a public nuisance—something akin to the gnat, Pennies get in the way when owe make change. They add unwanted weight to our pockets and purses. Few people nowadays even bend down to pick a penny off the sidewalk. Doesn’s that prove that mining and minting’ cop- per into pennies is wasteful? Today, if ic rained pennies from heaven, only a fool would turn bis umbrella upside down: The money caught would be worth less chan the ruined umbrella. @ 1. minting stamping cons from metal[have been antipenny for years, but final proof came about two years syago. 1 used to dump my pennies into {shoe box. Eventually, [ accamulated several hundred, Dismayed by the ‘ever-growing collection of useless coppet 1 offered the box to my son William, then 8, warning him that the bank would take the pennies only ifhe neatly wrapped them in rolls of 50. William, obviously a keen, intui- «ive economist, though the matter -» over carefully for abour two seconds before responding: “Thanks, Dad, but it’s not worth i” IFi’s not worth the time of an 8-year-old to wrap pennies, why does the U.S. govecn- ment keep producing the things? @ 91 Billion in Circulation More than the time of 8-year-olds is involved. Think how often you have ssaited in line while the customers ahead of you fumbled through their w pockets or purses for a few—exple- tive deleted —pennies. A trivial problem? Yes, until you multiply your wasted seconds by the billions of cash transactions that take place nour economy each year. I estimate tbat all chis penny-pinching wastes several hundred rnillion houss anniu- ally. Valuating? that a, say, $10 an hour adds up to several billion dollars | per year, which is more than enough ‘0 justify chis column. ‘We also must consider the cose of ‘minting and maintaining the penny supply. There are roughly 91 billion Pennies circulating, and every year 2. vauatng: placing value on the U.S. Treasury produces 12 bil- lion to 14 billion more, at a cost off about $90 million. Since this expen- diture just produces 2 nuisance for a society, it should be at the top of everyone's list of budget cuts ‘There are no coherent objections to abolishing she penny. It has been claimed, apparently with a straight face, that eliminating pennies would be inflationary,’ because all those $39.99 prices would rise to $40. [Apart from the fact that such increases ‘would be penny-ante; the claim itself 1 is ludicrous. A price such as $39.99 is designed to keep a four from appear- ing as the first digit—something the retailer deems psychologically important. In a penny-less society merchants probably would change the number to $39.95, not case it t0 $40, Even if only one-fifth ofall smetchants reacted this way, abolishing the penny would be disinflationary. so Sales tax poses a problem. How would a penny-fee economy cope with, for instance, a 7% sales tax on a $31 purchase, which comes to $2.17? The answer leads to the sec ond part of my suggestion. Let all states and localities amend their sales taxes to round all tax bills to the next-highest nickel. In the example, the state would collect $2.20 instead oo of $2.17. The customer would lose 3¢ but—if my previous arguments are correct-—would aciwally be bet ter off without the pennies. What other tax leaves the taxpayer happier for having’ paid 3. tnationarys causing an increase inthe pie of goods. Penny ante rt: business deal ona trivial sale Language Coach Prefixes The prefix ‘nti cormes from the Greek word for“agains! English speakers often 7 create new words, such as antipenny (ine 18), by adding a prefix to a existing word. What dé antipenny mean? EVIDENCE Inyour opinion, fs the anecdote Blinder offers Infines 8-35 truly“final proof" that the penny hnas no value? Why or why not? ANOLISHING THE PENNY MAKES GOOD SENSE a9© EVIDENCE Reread lines 107-120. What type of evidence does the author provide here? Ist relevant to his ‘argument? Explain. ‘After pennies are struck at the US. Mint, they must be inspected for imperfections before they can be released, Sentimental Value Sure, the penny has sentimental Only tradition explains our stub-_value. That motivates the lase pur born attachment to the penny. But _ of my suggestion. Rather than call sometimes traditions get ridiculous, in all the pennies and met them, Surely the smallest currency unit which would be too expensive and too a country uses should be related co _pethaps heartrending, the govems its average income. Yet countries ment should simply announce tht swith lower standards of living than _ itis demonetizing? the penny as of the United States have minimum next January—and let collectors currency units worth more than 10 take many of the pesky coppers T¢_—while we have been minting out of circulation, After hobbyists the penny for two centuries. and investors accumulated what- ven England, as tradition-bound ever stockpiles they desired, the ret a nation as they come, is mote could be redeemed by the govern progressive in this mater than che mnent—wrapped neatly in rolls of 110 United States. Years ago thesmallest 50, of course: unit of British currency was the far- ‘Let's get penny-wise and abolish thing, equal o one-quarter ofwhar the L¢ piece. The iden is so log qvas then called a penny. As England so obviously correct, that fam sue jrew sicher, the farthing gave way vo che new Congress will enact de to the half-penny, then to the old —_ing its first days in office. penny, and finally wo the new penny, which is the equivalent of 9.6 far- things. During this same time, all the stodgy United States did was 120 abolish the half-penny. © S. demonetzing idem -ingh depriving of value 650 Nir 6: ARGUMENT AND' PERSUASION‘After Reading comprehension 4, Recall What is the author's opinion of the penny? 2. Recall In what ways does the penny inconvenience people? 3, Summarize According tothe author, how will customers be mrfected at checkout lines ifthe penny Is abolished? Critical Analysis ‘4 Examine an Argument For each objection to abolishing the penny listed in the chart Objection Cousterargument sown, summarize the counterargument that ylation would resut the author makes to refute the objection. EE Se People would pay 8 5. Analyze Deductive Reasoning Review the more in sales taxes. | chart you created as you read. Whats the I strongest reason that the author presents ihe fel fs part of cur tradition to support his conclusion that the penny has lost its usefulness? Explain your answer. 6. Analyze Tone What tone does the author use when discussing arguments ‘i tavor of keeping the penny? Cite examples from the text 1. interpreta Statement What does the author intend to suggest in the last paragraph when he says that his “idea is 50 logical so obviously correct, that fam sure the new Congress will enact it during its fist days in office”? Predict an Outcome The author speculates about how merchants and cons.ntts would respond ifthe penny is abolished. What do you predict will happen if the penny is removed from circulation? Give reasons For your prediction. 9, Make Judgments The author states in the opening paragraph ‘that abolishing the penny would impose “costs on virtualy no one.” Do you aBre ‘with bis chapacterteation of how the change would affect people? Cite evidence fo support your opinion. @10. Evaluate Evidence Does the author provide sufficient ‘evidence to support his conclusion that tne penny should be abolished? Explain why of why nok. 11, Evaluate an Unstated Assumption Look at the chart on page 647 and note blinders anstated general principle. Do you agree with this basis for Blinder’s argument? Explain why or why not. Why keep what is no longer USEFUL? Do only useful things have value? |AOLISHING THE PENNY MAKES GOOD SENSE READING 98 stngush among Usteent Kinds of eidence sed {esuppart contusions and ‘arguments in texts 9 an an eter ue Meenasindeomalen | irons abette des intext { Sith onganotonal ar | 651