White House Offers Thoughts for Your Penny

[jakeXT]

The latest White House budget offers some hope and a clear comment on change.

The White House budget out Tuesday calls for a “comprehensive review” of U.S. currency production, including alternatives for the money-losing penny and nickel.

It costs 1.8 cents to make a penny and 9.4 cents to make a nickel, costing the federal government about $104.5 million last year, according to the U.S. Mint.

The Mint already is studying a change to the mix of metals it uses to make quarters, dimes and nickels, a study Congress mandated in 2010 to examine ways to save money. Materials could be altered for the first time in half a century or more, potentially changing the color and diminishing the weight of coins.

http://blogs.wsj.com/economics/2014/03/04/white-house-budget-calls-for-review-of-coin-production/

[Travis_0004]

1. Since vending machines check for weight, I wonder how well that would work.

Also, I say get rid of the penny. I don't think its needed. Some stores might round prices on all items to the nearest nickel, but they could also continue to price things by the penny, then round the final bill a few cents. (Where I work we often price things in half cent increments.


In 1973, a penny had the same buying power as a (2014) nickel. We got by just fine then without a smaller coin.

[pansypoo53219]

2. how much does a quarte cost? a dime? they never mention that just the penny. i call bullshit.

[Travis_0004]

3. A dime costs 4.56 cents, and quarter costs 10.5 cents

So those costs less to make than face value, plus I don't think there would be support to eliminate dimes and quarters regardless of what the costs are.