February 5th, 2013
Should the U.S. kill the penney? Canada dropped the use of its penny on February 4, 2013. And some economists believe the United States should also. Economics professor Robert Whaples has done his own study showing that consumers as a group would break even if stores rounded to the nearest nickel. He said many pennies fall out of circulation each year because consumers don’t see them as valuable, raising both the costs to the Mint as well as the economy as a whole. “The main argument against the penny is that it wastes our time,” he said. “We’re clearly losing money on the penny.” Even so, Whaples said the vast majority of people want to keep the penny for sentimental reasons.