It has been a long time since a penny has cost more than it is worth, but even so, there are reasons why they continue to be made. Read on to know why many defend their existence and how the economy would be affected if they disappeared.
It's no secret that pennies cost more to mint than they are worth, for they have almost no purchasing power. What's more, the US Mint could reduce its workload significantly simply by stopping their production.
So why are these coins still being produced?
According to the penny's advocacy group, Americans for Common Cents, the vast majority of the nation's citizens are in favor of the penny being produced as this coin drives donations from people who don't mind giving away a penny.
In addition, the group also says that removing the penny would not save the country money and that it would likely increase public spending and inflation, reports MSN.
Also, it is almost certain that the cost of many goods would rise, as companies would likely round their prices up, hurting mostly low-income people, who are the ones that make small purchases most often.