As they currently are, yes. It costs more to make a penny than what a penny is worth.
It costs more than a penny to make a penny. it costs 2.41¢ US (or $0.0241 US Dollars (USD)) to make a penny,
Use a different material?...
The penny is worth so little, it's pretty much worthless. All the U.S. has to do is make a law stating that all prices must be a in multiples of $.05.
use a different material
Pennies are actively ruining the economy and are worth less than it takes to make them. Basic economics requires they be removed.
They've already stopped production of them in Canada for good economic reasons, so I think it's safe to say that it would also benefit the USA if they did the same thing. Now if only every company and store that sells items would stop ending prices with 99 cents.
We know pennies are not cost effective to make. That's probably not good for the government, if they're losing a dollar eighty three for every penny. However, look at the hundred dollar bill. It costs a measly twelve and a half cents to print one. That's literally 0.125% of the worth. Therefore, they should make less pennies, and more hundreds.
Pennies help when giving change to pay something. Say your total is $12.01, That one penny can save you from getting 99 cents back. Makes it easier for the cashier to just give back a dollar.
Even though you cant buy anything thats less than a cent they still come in handy sometimes like getting change for example
Increased Cost — A report by Navigant Consulting, commissioned by Jarden Zinc,which supplies zinc to the Mint,found that the govern- ment would actually lose money without the penny. First, the Mint's fabrication and distribution costs include fixed components that will continue to be incurred whether or not the Mint produces the penny. Navigant estimates this fixed component at $13 million in FY 2011. Plus, there is $17.7 million in Mint overhead allocated to the penny that would have to be absorbed by the remaining denomi-nations of circulating coins without the penny. Second, under current Mint accounting,the nickel costs eleven cents to manufacture. In a scenario where nickel production doubled without the penny, Navigant concludes that with existing fixed costs, eliminating the penny would likely result in increased net costs to the Mint of $10.9 million, relative to the current state!