25 March 2008
Dept. of Currency: Penny Dreadful →
Gruber links to a story mentioning that the US penny not only costs more than a penny to produce but it’s worth has declined substantially.
Gruber says he’s “been throwing pennies away for years”, and while I agree with Garrett that saving change is preferable, I’ve been advocating for years that we should just do away with the penny all together. Just 50 years ago a penny had more worth than today’s quarter.
Let’s ditch the penny, get a dollar coin (we can even put Lincoln on it), and round all our transactions to the nearest .05. It’s not uncommon for economies to adopt this practice. Why not us?