Money

Canada Gets Rid of Pennies; Should U.S. Follow Suit?

| by Mark Berman Opposing Views

Canada's government has decided to get rid of pennies as part of its plan to cut $5.2 billion from its budget. Should the United States follow suit in dumping the money-losing coin?

USA Today reports that it costs the Canadian government 1.6 cents to produce something that is only worth a cent, losing $11 million per year. A study by a Canadian bank said it cost the private sector $150 million in 2006 to count, store and transport the copper coins.

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The government will stop making pennies by the fall and they will eventually be pulled from circulation.

The Globe and Mail writes:

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This means Canadians must get used to rounding off cash transactions if they've got no pennies on hand – an arrangement the federal government says it's leaving to consumers and businesses to work out.

The U.S. faces a similar problem, where it costs nearly two cents to make a penny, which is composed mostly of zinc. Many have proposed getting rid of it to save much-needed money, while Lincoln lovers prefer to keep the penny alive.

What do you think?