Tuesday, February 12, 2013

Pennies from China

In 1982, the U. S. Mint changed the composition of pennies to remove most of the copper. They had to do something because it took more than a penny's worth of copper to make a penny. Now pennies are made mostly of zinc, but they have a nice copper coating so they still look like pennies. Canada made the change a few years later. Fast forward thirty years and now it takes more than a penny's worth of zinc to make a penny. Canada has announced it is cancelling production of the Canadian Penny because of the cost. Can the U. S. be far behind? With a targeted rate of inflation, our Government has a stated policy which will lead to cancellation of the penny ... and then the nickel. It all started when we gave up the gold standard. Call me old fashioned, but I like pennies. So I'd like to make a suggestion: Instead of cancelling the penny, let's just make them cheaper. Let's move production of pennies to China. I bet the Chinese could find a way to make pennies for one cent each. Hell, let's just move the minting and printing of all our coins and currency to China. I bet no one could make our money cheaper faster than they can.

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