The Costly Penny
I already knew that it costs more to make a penny than the penny is worth. that issue has been well-debated in Washington for years.
(for those who haven't heard this, to manufacture and distribute a penny costs around 2 cents. it's been this way since back around 2006 sometime.)
over the weekend, I heard this....
the cost to make and distribute a nickel runs around 10 cents. basically, double the face value.... just like the penny.
but, a dime only costs 6 cents to manufacture and distribute. and, I guess that makes sense, as the dime is both smaller and thinner than the nickel, requiring less metal.
so what does this mean?
do we need the penny? do we not need the penny? who knows? would I be OK with doing away with it and rounding everything to the nearest nickel?
but, what if we do away with the nickel too? are we OK with rounding everything to the nearest dime?
(great read on this subject: http://www.npr.org/2013/01/19/169723296/a-thought-thats-worth-more-than-a-penny-or-a-nickel)
I just don't understand this whole situation. it makes zero cents... I mean sense.... for a coin to cost more to make than what it is worth.
are they using the most economical metal choice? is aluminum an option? of course, that would change the weight of the coin, which might require retooling of vending machine equipment.
what about size? should the penny and nickel be downgraded to dime size? that would really mess with vending equipment.... having 3 coins all the same size. plus, having a pocketfull of coins all the same size... can you imagine the confusion at cash registers everywhere? and poor elementary kids... trying to keep straight in their minds what the different coins are.
what's the solution?
eliminate the penny and nickel? i don't see that happening.
make all coins the same (dime) size? ummm... i don't see that happening. they'd have to figure out a way to easily differentiate them. use colors? brown penny, silver dime, and..... purple nickel! yeah right.
leave the coins same size and color... just put a hole in them. like cheerios & life savers. less metal = less cost.
change the metal to something cheaper?
aluminum maybe? they'd wear out faster, meaning they'd have to be replaced more often, meaning higher costs (i.e. 2 cheap coins = same price as 1 current coin).
or, make pennies out of chocolate. get your change, plus a tasty treat too. yum!!
Out for now....
Matt
