We believe that it is in our economy's best interest to cease the production and distribution of small denomination coins, namely the penny and nickel. The dime should also be seriously considered.
According to the US Mint, in 2010 a single one-cent coin cost 1.79 cents to produce and distribute. A single five-cent coin cost 9.16 cents to produce and distribute in 2010. And yet the half-cent was discontinued in 1857 when it had more buying power than today’s dime.
We also waste valuable time handling coins. Getting rid of these coins could save us up to $1 billion annually in lost opportunity costs.
Other countries such as Australia and New Zealand have stopped using 1-cent coins with no noticeable price increases or drop in charitable contributions.