No economy can dig itself out of debt when its coins cost more to construct than their actually worth. The U.S. government spends more than twice the amount of money making nickels and pennies than the coinsí spending value. It is imperative to look into more economical options regarding coin manufacturing in order to allocate the spending elsewhere.
In 2011, the cost for creating a single penny was 2.4 cents and 11.2 cent for a nickel. President Barack Obama has even approached Congress for a replacement metal mixture in hopes of alleviating funds. The 2011 fiscal year saw a spending of $116.7 million on nickels and pennies, three times the amount spent in 2010. In just 5 years, the penny and nickel have cost America $359.8 million.
There are a couple suggested alternatives that have generated some traction. Research into developing a new, more cost-effective metal mixture to create the coins has been proposed to Congress. The bill suggests using steel as the primary base rather than the scarce zinc and copper. Although the penny and nickel will still be indebting, the U.S Mint has developed a $1 coin that only costs 17 cents to a unit; the immense profit made by the dollar coin could outweigh the debt caused by the nickel and penny. These options would allow for a greater profit as well as the avoidance of the penny and nickelís destruction.