Because they can make money off the pennies by recycling them, it costs them the metal worth of the pennies they choose not to recycle. There are also productiv

Because they can make money off the pennies by recycling them, it costs them the metal worth of the pennies they choose not to recycle. There are also productivity benefits if people don't have to count pennies during transactions. And it's a highly visible action the federal government can take to show it still exists to people who don't read newspapers (like me). I'm sure there are other reasons, but pinning the penny as a "drag on the economy," probably tops the list after the obvious, "I pay taxes to keep the penny in circulation? Why didn't they recycle it?"