« Money

Are We About To Get Rid Of The Penny And The Nickel?

by Ben Olson

Making small change continues to be a huge money-losing business for the American taxpayer! Last year for the eighth year in a row, we actually lost money making pennies and nickels thanks to rising metal prices that have made the cost nearly double. Yep, it actually costs more than a penny to make a penny. For real. This will be the third year in a row those losses top $100 million! President Obama mentioned the possibility of using cheaper metals to make the coins in his budget last week, but of course he'll face stiff opposition from industry groups, especially the zinc producers who provide 97.5% of what goes into a penny. Canada got rid of the penny last year. Should we?