Canada ditches the penny: Is U.S. next?

NEED TO KNOW
  • Canada stopped manufacturing pennies on Monday
  • It costs 2 cents for every penny manufactured in the U.S.
Canada ditches the penny: Is U.S. next?

The Canadian government has officially decided pennies are just too much trouble.

As of Monday of this week, the Royal Canadian Mint has halted their production, saving taxpayers an estimated $11 million a year. All cash transactions in Canada will now be rounded to the nearest 5-cent mark, while credit charges will remain the same.

Is the United States next in line to let go of the penny?

The United States Mint reports that it costs 2 cents for every penny manufactured, due to materials and production. A big factor in the price is the rising cost of zinc, which is the penny's main ingredient. As of 2012, the loss of profitability due to its production was a cool $58 million. All for a coin that most of us wouldn't pick up off the sidewalk!

Obama called for a change to the coins' recipe in 2012 -- which has been the same for the last 30 years -- but so far, there isn't a cost-effective solution.

Former U.S. Rep. Jim Kolbe made a move to try to get rid of the coin twice, but was unsuccessful. Canada joins a long list of other countries who have stopped making the coin, including Finland, New Zealand, Norway, Sweden, The Netherlands, and Australia.

Come on, America -- give us one less thing to worry about counting!

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