We have currency to carry out financial exchanges and transactions in our daily lives. But have we ever thought that the production of these notes and coins also costs something to the government? Well, it definitely does. Especially when coins are to be produced, they take up a good deal of money from the central wallet. In this article, we will talk about the cost that it takes to make a dime in the US and the government’s take on the idea. Let’s get started.
What is the concern?
The concern in this entire matter is that the minting of coins is asking for a huge investment if we look at it from a bigger eye. Although the difference doesn’t feel huge when it is about a penny or two, it definitely makes more sense when the amount is huge. This is where the piled-up difference can be easily noticed and has caused the government to worry in recent times. The problem even went to the extent where the authorities were wondering if the minting of pennies should be stopped altogether. But since it seems like a far-fetched thought, no steps towards it are expected anytime soon. Also, it has its own reasons which we shall discuss ahead.
Cost of making a penny/dime
To understand the problem in a more specific and deeper manner, let us understand the cost dynamic around producing or creating a coin/penny. We can see that in the past fiscal year, the cost of minting a single penny rose to $3.69. This is gravely concerning as it is even less than the face value that the amount represents as well as hard to manage when this is done in bulk. And it has only seen an increase over the past years, the last year being the final jerk that made the government take a deep breath.
Since the elements are costly, especially when they have to be imported or extracted in a costly manner. The concerned authorities have also discussed if alternate materials can be used to mint pennies so that the problem gets resolved and less production cost is decided upon. But nevertheless, we see that producing a dime here costs around 6 cents.Â
Why can’t penny production be stopped altogether in the US?
That is the most asked question on the matter. And to answer it honestly, we need to have a look at the statistics of the total population living in the US and how they handle their finances. The result gives us a shockingly huge number of people who don’t even have bank accounts and only trade in money. Also, having a fair transaction where both parties receive the exact change when handling cash is an important reason why pennies as of now can’t be banned altogether.
But the current situations definitely call for an orderly take from the government and the concerned authorities to take one for the nation. Although it is a huge step, it can change the current face of finances in the US.
