Keep the Change

    Your thoughts might not even be worth a penny in coming years. The one cent coin is potentially leaving the U.S. currency system.
    So, how about some cost-benefit analysis? Pennies can be pricey. It cost two cents for every one cent produced by the federal government. In 2012, this led to a $58 million deficit.
    But this isn’t the only reason the penny could be on its way out. Have you ever noticed the loose change dishes at cash registers?
“The fact that people happily leave coins for others to use tells you a lot about the value people place on small-denomination coins,” IU economics professor Eric Leeper says.
    Or imagine a quick trip to Target. The total is $5.97, you only have bills, and you’re in a rush.
    “It’s common for people to walk away without waiting for their change when they are to receive only a few pennies back,” Leeper says.
    America wouldn’t be the first country to go penniless. Australia, Norway, and Sweden have all ditched their lowest currency coins, most recently followed by Canada who removed the penny from circulation Feb. 4. The Canadian Mint is rounding up the country’s remaining pennies, which were also causing a federal deficit, so they can be melted and recycled.
    “Taken together, these factors explain that small-denomination coins are of little value to consumers and are profit losers for the government,” Leeper says. “Clearly, such coins are not long for this world.”
    Even so, there are still many who support the penny. Some worry prices will increase if rounding to the nearest nickle becomes the norm, while others argue for the American sentimentalism of our 16th president.