What will become of the penny?

[MDMac]

Since 2005, the U.S. Mint has been paying more to make a penny than it is actually worth.

The current value of the mostly-zinc and copper penny is approximately 1.26 cents. With Congress looking to cut costs: enter the Coin Modernization and Taxpayer Savings Act of 2008.

The resolution, introduced last week, would require the Mint to start producing steel pennies in nine months and begin incorporating steel into nickels over the next two years.

The rise in production costs is attributed to the hike in metal prices worldwide, caused by a demand from countries like India and China. The nickel is also losing money--it now costs 7.7 cents to manufacture, according to the Mint.

 

[Gila Marc]

In the 1950's when I was a VERY YOUNG boy we had to pay Missouri state taxes on purchases in fractions of a cent. They issued what was called a "Mil"...one thousandth of a cent. I remember one mil, five mil and ten mil "coins" made of red plastic. No one wanted them and they were regularly thrown away. I really believe this is where the penny is going, and probably the nickel, if not eliminated altogether.

Marc

 

[bobo37]

Another big problem that we have is that our money is a fiat currency. Our money isn't backed by anything and money is printed out of thin air which is inflation. The dollar is now worth less than the Canadian dollar.

 

[GRAY GHOST]

n/t

 

[bobo37]

That would be a drop in a bucket

 

[GRAY GHOST]

n/t

 

[treasurefiend]

lol, just get rid of the penny and the nickel!!! At one time they were things that you can buy with them, now the only thing you can get with a quarter is a gumball.