The cost of producing the penines and nickels began rising in 2006 with the rise in copper prices. With the recent decline in commodities, costs have declined. Yet, it still costs more to make the two coins than they're worth.
In 2013, the U.S. Mint lost $105M producing the coins. Eliminating pennies and nickels would save taxpayers $100M/year. Any guess concerning who's left on the hook to pay that bill as it adds to the nation's deficit? Yep: The U.S. taxpayers.
An alternative would be to change the metal composition of the coins; however, doing so would require vending machines to be upgraded across the country. That is estimated to cost billions of $$$s...which, of course, would be passed on to consumers.
Some other factoids from the U.S Mint report:
- It costs 5.4 cents to make a $1 bill.
- It costs 8.95 cents to make a quarter.
- It costs 3.91 cents to make a dime.
These factoids remind The Motley Monk of the adage his Dad taught him as a youngster: "It takes $$$s to make $$$s!"
Let the discussion begin...
To read the Washington Post article, click on the following link:
"It cost 1.7 cents to make a penny this year, and 8 cents to make a nickel."