I have recently seen this article put out by numerous news agency’s about how Obama wants cheaper pennies and nickels. Which seems like a nice idea, but I would like to make more money at work and not need to pay for food…….. it’s an unrealistic want on both of our parts because mine is wishful thinking and pennies cost nearly half their value just to make even if you don’t include the raw materials. Which means when they actually make them they cost over twice as much as they are worth on the street just to make. There are even websites dedicated to saving pennies because of their value to turn a profit. This all seems to be a reassurance the whole US cash system seems to be more costly and out of sync with the rest of the world.
Another example is that the US government has opted not to continue making dollar coins because they have trouble being accepted into circulation instead of forcing the change by dropping the dollar bill. This is mostly because businesses don’t see the “fun” or the convenience of using them because they need to break routines and change their registers to comfortably accommodate them. Coins that have a large enough value to not be crested by their production costs, cannot be put into production (new coins) because they will not be used, so we are opting to stick with the significantly less durable $1 bill at a greater cost. We won’t use/create coins that are affordable to make, yet we continue making coins that are ineffective and costly.
These are numbers are from 3 years ago, but you can already see that there is going to be problems with making the various types of US currency.
Cost to Make
$0.0167 for a penny
$0.077 for a nickel
$0.04 for a dime
$0.10 for a quarter
$0.16 for a dollar coin
$0.064 for a dollar bill
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What do you think about this whole coin/dollar fiasco? Should we be killing off coins due to their cost to make and lack of usefulness or should we be sticking to our heritage of stockpiling these little treasures until we go to the bank to upgrade them into bills? Let me know what you think!