We Should Get Rid of Pennies
Pennies are an annoyance to carry around and to use?and they cost more to make than they?re worth. There?s always a shortage of them because people either throw them away or collect them in jars. But if the penny was eliminated, as some economists suggest, would rounding prices to the nearest nickel end up costing consumers more money? Economist Robert M. Whaples has discovered it wouldn?t and says, “It’s time to eliminate the penny.”
Whaples estimates that the US loses about $900 million a year on penny production and handling. The cost is mainly due to the rising cost of zinc, the metal that makes up 97.5% of the penny, as well as to the costs of minting and transportation. Whaples says, “The cost of making our money, the penny, is now more than 1 cent (per penny).” read more