$.0126 is 1.26 cents, so it is more than a penny to make a penny.

american39, 1.26 cents to make a penny would be correct. if it was .0126 they wouldn't be losing money.

Then I'd like to sell you my car for twice its worth, and you can use it as many times as you need to make you think that your poor investment is justified. In the meantime, I'll buy another of the same car for its actual worth, double my investment, and get the same amount of use out of the car as you.

If the analogy did not make sense to you, then how about I phrase it this way: How much more use do you get out of a penny that costs $0.0126 than a penny that costs less than $0.01? None. Hence you are losing money because it will be used the same no matter what the cost of production. So lower cost, or get rid of it.

It's simple economics. And by simple I mean, although it is taught in any undergraduate level economics class, it has evaded notice to the American car companies, and now our govt. If you are making something that doesn't make a profit, DON'T make it.

It isn't all that big of a deal once the concept of multiple use is grasped.

Great points. And I like how you chose to state the issues rather than your opinions. But conclusions need decisions, and debate.

I think you hit the penny right on the heads. In this economic downturn, getting rid of them would save us $5.4 billion x .26 = $1.404 billion annually. That kind of penny pinching goes a long way.

For them to be effective, they should be used as often as their corresponding worth. They should be used 10 times as much as a dime, not 5. And 2 times the number of quarters means a quarter is worth much more (<17.5) as a unit of trade per cent.

That's confusing. Allow me to demonstrate by example. Would you prefer 4 quarters, or a dollar? Quarters can be used as laundry money and in vending machines. Dollars are lighter to carry, and (although not waterproof) are accepted basically anywhere without argument. It's tough, but I think I'd prefer a dollar in my pocket. Now, which would you prefer, a dollar, or 100 pennies? A quarter, or 25 pennies? No contest. How about a dime? Nickel? Or better yet, a dollar, or 101 pennies? I think most people at a checkout counter would prefer the convenience over the penny profit.

Also, there is a difference between most produced and most popular. Pennies are so prevalent and worthless that they litter the streets and sit in piles at any gas station (give one, take one). I've even had "penniless" homeless people scoff at me for giving pennies to them. If you value the currency, you'd hold onto it. One reason they are produced more is because you can throw them away with no remorse. They're practically free.

As for the current sales tax structure, here's a simple solution: round up.

And the fact that we did have smaller currencies than the penny and don't anymore just furthers the idea that the penny is past its time.

But if none of this swayed you, let's go to the most basic analysis. What can you buy for a penny? I'm hard pressed to find anything. I've even been to a penny candy store (also hard pressed to find as they've been replaced by the dollar store) and not found a piece worth that a penny. If you can't use one to buy anything, why have one at all?

I have a wish for US fiscal responsibility. But should it come true I may not be able to make another again. :)

I just read that the penny is the most popular American coin. 5.4 billion pennies were made in 2008, for example. That's more than double the amount of quarters and more than 5 times the amount of dimes made. With such high numbers, it doesn't seem like it's going away; especially if the Mint developed new designs in 2009.

It could be argued that eliminating something so pervasive could result in significant financial savings. Frankly, I don't know where I stand on the issue. The first logical response is, 'If it costs more, stop making them.' But what's the penny's impact on the market? If it does help things along in some significant way, then maybe that benefit outweighs the extra cost to making them. Also, aren't they required given our sales tax structure -- because sales tax takes things to an unrounded final cost. Taking away the penny isn't as simple as it might seem at first glance.

Another point: did you know merchants don't have to accept all forms of payment, even legal tender? So some store owners can, and have, refused to accept pennies. They, of course, have to modify the costs of their goods and services so that with the sales tax the amount comes to a multiple of 5. I guess the people could effectively make the need for pennies non-existent.

Finally: Did you know, in the early days of the US, there was a "mill" -- a coin worth one tenth of one penny (i.e., $0.001 or 0.10¢ US)?!

American39:

I actually agree with your analysis of depictions of modern capitalism. I'm for free-market capitalism in a society far different than the one existing now.

Economics aside, it makes no sense to print a currency that isn't even worth the time to bend over to pick up.

Economics should dictate what we do, but that's assuming we're a capitalistic society, and are logical. Seeing as we call our most capitalistic icon the "free" market, yet paid $850+ billion into it in tax dollars, it is not a free market, and our persona of capitalism is about as accurate as thinking we live in a capitalistic society that has social security.

Seeing as we can't even follow the basic tenets of economics, and not even the highest paid CEO's know how to run a business without going bankrupt, we'll probably just throw money at this too. I'd love to see the headlines, "US Mint goes bankrupt." How would they get the money to print more money?! That's just hilarious.

If there are 100 cents in 1 dollar, then there are 1.26 cents in 0.0126 dollars. ¢ and $ are different symbols. It's like saying 0.01cm=0.01m.

I'm not sure I understand what you mean American39.

I would agree with you, though in this conversation I am referring to America as opposed to Australia, and you are from Australia is that correct?

I don't believe that government will ever just 'not care' about the economy and decisions made for it, but it all depends on how the decision will support or not support the state. Taking the penny: will this effect positively how and what people think and see the state as, or will it effect it negatively?

I would submit that most if not every decision made by governments can and is easily a detriment to the people and the economy as long as it supports the state. The penny can be outdated and of no use to anyone, but if it has a use or a purpose for the state, it stays.

OK, try this then $0.0126 for the correct way to enter digital monetary values.

american39

...you are wrong...wisegeek clearly posted the "cent" sign, and not the "dollar" sign...making the statement correct..

Now to my opinion.....the penny, nickel, dime *and* 1/2 dollar and dollar coin should be discontinued...there should only be quarters...all merchants have to do is round up or down...very simple, and everything will even out financially.

The text display of c1.26US is not correct. The decimal is misplaced by 2 positions.

Look at $.0126

In Australia, we did away with our 1 and 2 cent coins years ago. Everything gets rounded up and down. No complaints. It all works out.

the cost of a penny leaves me to believe that no one in our government really does not care about our economy and will continue to waste money on something that is outdated and of no use to anyone.