Every penny costs 2.4¢ to make (a net loss of 1.4¢), and every nickel costs 11.2¢ (a net loss of 6.2¢). Put into perspective, $116.7 million were wasted minting pennies and nickels in 2011 alone.
Because pennies and nickels are worth so little, they aren't used to buy anything, but to sort out change. Vending machines don't take pennies & rarely take nickels, and coin laundries or candy machines only take quarters. It takes more of an individual's time than it's worth to count out these low denominations for a transaction.
Getting rid of the penny and the nickel will save money for the treasury and provide a boost in efficiency for all businesses and individuals that make cash transactions, all of which is good for the economy and the Federal budget.
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