I recently learned that the Canadian government would like to or is considering eliminating the Canadian penny. By some estimates, it actually costs more to produce a 1 cent penny. This is all in the name of saving Federal expenses. In my mind, the effect of such a change would make our cost-of-goods be rounded up to the nearest five cent mark. For example, a Big Mac that costs $3.46 would instead cost $3.50. Should we still pay for our goods to the exact penny or something else? Therefore, my question is: Should the U. S. government ever consider eliminating the Lincoln penny; how do you feel about it? less

The more items and transactions you have in a day, the more the 1-4 cents will add up. For example, if you were to buy a magazine, buy gas and go food shopping in a single day, you might think, "So what, that is 12¢ tops." Unfortunately, incorrect. The magazine might be 4¢, but the gas would be 4¢ per gallon (and who buys one gallon?), and at the supermarket, every item you buy would be marked up.

Even in the best case scenario, an increase of 1¢, if I were to buy a book, 10 gallons of gas (which doesn't fill my tank), and the day's groceries (on average about 15 items) I'm paying a total of 26¢ more. Over the course of year, that works out to $94.90. If the increase is closer to 4¢, then the increase looks more like $1.04/day, $379.60/year.

It's not often I need to buy gas everyday, and I have managed to make it out of the supermarket with less than 15 items, but the increase will be across the board, and over a year it will add up. We already have a large enough problem with record unemployment and a failing real estate market, I don't think we need to add unnecessary inflation to the mix. less

At this point due to the price of copper, it costs more to mint the penny than it is worth. I wouldn't mind seeing them removed, but it would take a while. With more people paying for everything on their card, I wonder if they will even do this. I know that very few want to see a price increase, and will raise hell over it. But I honestly don't know if 4-1 cents will add up in a major way.

What I get stuck on it sales tax, will that go up or will they still get their same cut. I'm from Delaware, so I grew up not having sales tax, when I moved out of state I had to learn it. People think I'm nuts, but we seriously don't have sales tax there, so I can do the math, but wasn't used to it. less

I recently learned that the Canadian government would like to or is considering eliminating the Canadian penny. By some estimates, it actually costs more to produce a 1 cent penny. This is all in the name of saving Federal expenses. In my mind, the effect of such a change would make our cost-of-goods be rounded up to the nearest five cent mark. For example, a Big Mac that costs $3.46 would instead cost $3.50. Should we still pay for our goods to the exact penny or something else? Therefore, my question is: Should the U. S. government ever consider eliminating the Lincoln penny; how do you feel about it? less

The more items and transactions you have in a day, the more the 1-4 cents will add up. For example, if you were to buy a magazine, buy gas and go food shopping in a single day, you might think, "So what, that is 12¢ tops." Unfortunately, incorrect. The magazine might be 4¢, but the gas would be 4¢ per gallon (and who buys one gallon?), and at the supermarket, every item you buy would be marked up.

Even in the best case scenario, an increase of 1¢, if I were to buy a book, 10 gallons of gas (which doesn't fill my tank), and the day's groceries (on average about 15 items) I'm paying a total of 26¢ more. Over the course of year, that works out to $94.90. If the increase is closer to 4¢, then the increase looks more like $1.04/day, $379.60/year.

It's not often I need to buy gas everyday, and I have managed to make it out of the supermarket with less than 15 items, but the increase will be across the board, and over a year it will add up. We already have a large enough problem with record unemployment and a failing real estate market, I don't think we need to add unnecessary inflation to the mix. less

I recently learned that the Canadian government would like to or is considering eliminating the Canadian penny. By some estimates, it actually costs more to produce a 1 cent penny. This is all in the name of saving Federal expenses. In my mind, the effect of such a change would make our cost-of-goods be rounded up to the nearest five cent mark. For example, a Big Mac that costs $3.46 would instead cost $3.50. Should we still pay for our goods to the exact penny or something else? Therefore, my question is: Should the U. S. government ever consider eliminating the Lincoln penny; how do you feel about it? less

That's so cute. I like your reasoning better than mine.

I'll also add, that I enjoy saving pennies. Every couple of months I take them to the bank for counting and it usually translates to a nice little pick-me-up. My last visit translated to $62. less

I recently learned that the Canadian government would like to or is considering eliminating the Canadian penny. By some estimates, it actually costs more to produce a 1 cent penny. This is all in the name of saving Federal expenses. In my mind, the effect of such a change would make our cost-of-goods be rounded up to the nearest five cent mark. For example, a Big Mac that costs $3.46 would instead cost $3.50. Should we still pay for our goods to the exact penny or something else? Therefore, my question is: Should the U. S. government ever consider eliminating the Lincoln penny; how do you feel about it? less

These are all very cute and sentimental reasons for keeping pennies in circulation, but the facts are they cost our government (which in turn costs the PEOPLE) millions and millions of dollars a year, they clog up banks, and we'd all be better off in the long run with a more streamlined money system.

In the long term getting rid of pennies will SAVE the American public, not cost us.

Paper and coin money is nearly already now a thing of the past. Let's start with the most expensive and least necessary coin: the penny.

It's about long term, growth driven, sustainable economics, not sentimentality.

Here's some excellent, evidenced based arguments for elimiating pennies, from Wikipedia, but the truth is available a lot of other places.

Arguments for elimination

Production at a loss — As of February 2011, it costs about 2.4 cents to mint a penny.[3] In 2007, even the price of the raw materials it is made of exceeded the face value, so there was a risk that coins were illegally melted down for raw materials.[4]

Lost productivity and opportunity cost of use — With the average wage in the U.S. being about $17 per hour in 2011,[5] it takes about two seconds to earn one cent. Thus, it is not worthwhile for most people to deal with a penny. If it takes only two seconds extra for each transaction that uses a penny, the cost of time wasted in the U.S. is about $3.65 per person annually,[6] about $1 billion for all America.[7] Using a different calculation, economist Robert Whaples estimates a $300 million annual loss.[8]

Limited utility — Pennies are not accepted by all vending machines or many toll booths, and pennies are generally not accepted in bulk; however, Illinois does accept pennies in its toll booths.[9] In addition, people often do not use cents to pay at all; they may simply use larger denominations and get pennies in return.[citation needed] Pennies end up sitting in jars or are thrown away and are not in circulation. Economist Greg Mankiw says that "The purpose of the monetary system is to facilitate exchange, but... the penny no longer serves that purpose." [10]

Prices would not be higher — Research by Robert Whaples, an economics professor at Wake Forest University, using data on nearly 200,000 transactions from a multi-state convenience store chain shows that rounding would have virtually no effect. Consumers would gain a tiny amount – about 38/1520 (1/40) of a cent per transaction.[11]

Historical precedents — There has never been a coin in circulation in the U.S. worth as little as the penny is worth today. Due to monetary inflation, as of 2007, a nickel is worth approximately what a penny was worth in 1972.[12] When the United States discontinued the half-cent coin in 1857, it had a 2008-equivalent buying power of 11 cents.[13] After 1857, the new smallest coin was the cent, which had a 2008-equivalent buying power of 26 cents. The nickel fell below that value in 1974; the dime (at 10 cents) fell below that value in 1980;[12] the quarter (at 25 cents) fell below that value in 2007.[13]

Hazards — The reduced-cost clad zinc penny, which has been produced since mid-1982, holds additional dangers when swallowed by children and others, unlike all previous U.S. coins. If the copper plating is breached, the penny quickly corrodes into a sharp-edged object, which is more likely to lodge in the digestive tract. Injury is more likely and furthermore, zinc and copper digested from the lodged pennies may be toxic. An 11 lb (5-kilogram) dog was fatally poisoned by swallowing two pennies. less