Is President Obama gunning for the penny?
The commander in chief expresses support for getting rid of our least-valuable coin, which costs more to produce than it's worth.
If President Barack Obama has any say in it, the United States is going to lose its cents.
The subject came up during a Google+ hangout with Obama that was advertised as a "fireside" chat, reminiscent of FDR's famous radio addresses.
One participant asked the president why the U.S. hasn't yet phased out the coin, according to Business Insider.
"I gotta tell you, John, I don't know," Obama replied. "Any time we're spending more money on something that people don't actually use, that's an example of something we should change."
If the U.S. dumps the penny, it would be following its neighbor to the north. The Royal Canadian Mint earlier this month halted distribution of the pennies to banks and other financial institutions, with the goal of eventually phasing out the tiny coin from distribution. The reason? The penny costs Canada 1.6 pennies to make, turning it into a money-losing proposition.
The situation is similar for the U.S., where in 2011 it cost the country 2.4 cents to manufacture each coin. According to a group called the Citizens to Retire the U.S. Penny, the country spent almost $120 million in 2011 to produce $50 million worth of coins.
Dropping the penny would produce savings, but overall the amount would be tiny compared with the government's $3.5 trillion in annual spending.
That hasn't escaped Obama's attention.
"This is not going to be a huge savings for government," he noted on the Google+ hangout.
Of course, the penny's fate isn't up to Obama. The U.S. Mint, which makes the coins, is a federal agency, and getting rid of the coin would take an act of Congress.
Obama seems to realize that getting rid of the coin wouldn't be easy.
"One of the things you see chronically in government, it's very hard to get rid of things that don't work so then we can invest in the things that do," he said, according to Business Insider. "So the penny becomes a good metaphor for a lot of the problems that we've got."
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By the time this guy is done with this country, all we will be left with is our pennies. Now he wants to do away with those too. I guess we don't get change either way....
That's government for you.
THE USPS JUST NOW WENT TO 46c PER STAMP ...THEREBY DEMANDING THE USE OF PENNIES !
False assumption that it costs more to produce than it's worth to the government. Every time it changes hands in view of the government it produces revenue for the government. So a penny probably "makes" the government far in excess of it's value over it's lifetime.
If you want to get rid of something that is costing us more that it's bringing in, get rid of Obama.
All the pennies add up! 70 MILLION is a start towards 3.5 trillion. The Congress needs to start working for the people or the people will remove all of them. Typical answer that its not a huge amount, but it all adds up.
"Someone" said, "Keep the penny. . . dump Obama."
Sounds like a good idea to me.
If there were no sales tax, it might work, but businesses
will just round-up to the nearest 5-cents & the
consumer will end up paying more than if the Govt.
has to spend 0.6 cents to produce the penny!
wow... we spent 10.5 billion dollars to make 5 billion unnecessary coins? have to beleiev that there are enough pennies out there that it is not necessary to make more. no wonder we are broke. "hey, let's make some more pennies for the fountain.... oh, and send some F-16's to Egypt"
where was that vote?
One of the things you see chronically in government, it's very hard to get rid of things that don't work so then we can invest in the things that do.....
Dont we know it, Obama being one of these things.
Looks like there were more moochers at the polls than there were workers ( aka tax payers).
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