The Cost of Currency: Is it Time to Ditch the Penny?


Is it time to ditch the penny? Since 2006, it has cost the United States Treasury more to produce the penny and nickel than the value of the coins themselves. For 2011, each penny cost American Taxpayers almost 2 1/2 cents while each nickel cost taxpayers 11 cents. There are arguments on both sides of the issue. One argument for keeping the penny is that business’s would round prices up and this would hurt lower income individuals who are more sensitive to price increases. The main case for getting rid of the penny is the cost savings to American Taxpayers, about $60 Million.

Should we follow the lead of our Canadian friends and ditch the penny?

Infographic: How Much Does It Cost to Make U.S. Currency?

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20 Responses to The Cost of Currency: Is it Time to Ditch the Penny?

  1. Marissa @ Thirtysixmonths 05/10/2012 at 7:12 am #

    We just did this in Canada.

  2. AverageJoe 05/10/2012 at 10:28 am #

    The surprise for me here is the cost of a nickel. I never knew it was that expensive.

  3. Jai Catalano 05/10/2012 at 5:14 pm #

    I have the steal pennies from the 40s. I say let’s bring those back.

    Honestly if the penny leaves because of cost I will be sad. I love the penny. My mom always said pennies make the dollar and it’s possible that statement will one day NOT be true.

  4. John @ Married (with Debt) 05/11/2012 at 7:04 am #

    Argh I hate the penny. In this day and age, the smallest denomination should be a dime or nickel. The fact that we aren’t on a Base 10 system for measurement and currency still bothers me.

    • Paul 05/14/2012 at 8:09 pm #

      I would like to see the penny and nickel removed from circulation for the cost savings to taxpayers alone.

  5. SB @ One Cent at a Time 05/11/2012 at 7:19 am #

    so the coins are costing money to the govt. But when stores price items at $88.99 you got to keep pennies in circulation.

  6. Deacon 05/11/2012 at 2:36 pm #

    If it is truly 2-1/2 cents to make a penny and 11 cents for a nickel, than that seems like a no brainer!

    • Paul 05/12/2012 at 7:43 am #

      Do you think retailers will round down if we drop the nickle? Don’t think so.. ;)

  7. Dannielle @ Odd Cents 05/18/2012 at 8:40 am #

    It’s kinda crazy to think that it costs to make the coin is way more than the value of the coin. I need to find out how much it costs here.

    • Paul 05/18/2012 at 1:50 pm #

      I think there is a good chance the penny won’t be around much longer. I was surprised at how much the nickel costs to make.

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