Pennies cost more to make than they're worth at 1.5 cents each
- Each one-cent piece cost the U.S. Mint 1.5 cents to produce in 2016
- Congress would have to pass a law to change currency denominations but there is no appetite for doing away with the penny despite its cost
- The cost to produce the coin cost 1.43 cents to make in 2015, while in 2014 its production value was 1.66 cents. In 2010, each penny cost 2.5 cents to make
- A dime costs 3.9 cents to make, and a quarter 9 cents
- The Mint could save $52.9 million if it simply eliminated the penny
- Countries including Canada, Australia and New Zealand have done that
The cost to produce the one-cent coin increased to 1.5 cents during 2016
Producing a penny could be more trouble that it's worth.
The cost to produce the one-cent coin increased to 1.5 cents during 2016.
Despite efforts to cut the costs of manufacturing the copper coin, it appears to be impossibly to bring the cost below it's face value of one cent.
The Obama administration looked at possible options to replace the penny and nickel but it would require Congress to pass a law.
In 2010, Congress instructed the U.S. Mint to look for cheaper ways to make coins but so far there does not appear to be a clear solution.
'There are no alternative metal compositions that reduce the manufacturing unit cost of the penny below its face value,' a 2014 report to Congress said.
Relative to its face value, the penny costs more to make than any other denomination
'At this juncture, there are several possible options to alter the metallic compositions that would lower the costs of United States coins, but the Mint does not recommend adopting any of these options until ongoing research is completed on a promising alternative that has the potential to duplicate the weight and [electromagnetic signature] of existing coinage,' the Mint said.
In 2015, the penny cost 1.43 cents to make, while in 2014, its production value was 1.66 cents.
The nickel, too, is dead weight for taxpayers. Production costs stood at 8 cents last year, down from 11 cents
The Mint actually makes money on the dime and quarter, producing 2.87 billion dimes and 2.65 billion quarters in 2015.
In 2010 Congress instead directed the U.S. Mint to look for cheaper ways to make the coins. The Mint concluded there weren’t any
The Mint facilities in Philadelphia and Denver produced 9.16 billion pennies over the same period - more than any other coin.
Because so many pennies are kept out of circulation or discarded, the Mint keeps having to issue more.
The reason it makes so many is because its low value mean many consumers simply neglect it.
Pennies end up piling up in jars or under sofa cushions rather than being used for purchases.
The Mint could save $52.9 million if it simply eliminated the penny. That’s what Canada, Australia and New Zealand have done without any ill-effects.
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