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.
The government will stop making pennies by the fall and they will eventually be pulled from circulation.
The Globe and Mail writes:
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?