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> but IIRC one of the reasons for ditching the penny in Canada was that it cost more than a penny of copper to make a penny out of copper. That's true for all
by heavenlyblue 2y ago
> but IIRC one of the reasons for ditching the penny in Canada was that it cost more than a penny of copper to make a penny out of copper.
That's true for all coins, otherwise it would be an infinite money hack
- robertlagrant 2y ago> That's true for all coins, otherwise it would be an infinite money hack The government can print money if it wants to; it's just a bad idea.
- tmtvl 2y agoIsn't that backwards? If a penny contains more than a penny's worth of copper you can make "infinite" money by exchanging some money for pennies, smelting them down into copper, selling the copper for more money than you exchanged in the first place, and repeating the process until you're as rich as Bezos.
- jfim 2y agoThe overhead of obtaining a large amount of pennies and smelting them likely makes the whole operation unprofitable, besides being illegal for defacing currency.
- angoragoats 2y agoThis is not correct. Most US coins (other than the cent and the 5 cent nickel) cost much less to make compared to their face value. For example, it costs just a bit less than 6 cents to make a dime, and just shy of 15 cents to make a quarter [0]. The "profit" that the government makes via minting coins and printing currency is known as seigniorage [1], and is reflected in the government's budget as revenue. [0] https://thehill.com/homenews/nexstar_media_wire/5136331-how-much-does-it-cost-to-make-a-penny-and-are-we-losing-money-on-other-coins/ https://thehill.com/homenews/nexstar_media_wire/5136331-how-... [1] https://en.wikipedia.org/wiki/Seigniorage https://en.wikipedia.org/wiki/Seigniorage