Pennies are shown in Ottawa on Thursday, March 29, 2012. The humble one-cent piece is set to disappear from Canadian pockets, a victim of inflation. Thursday's federal budget said the Royal Canadian Mint will strike the last of the little coins this fall. (AP Photo/The Canadian Press, Sean Kilpatrick)
Canada is literally pinching pennies from its budget. The finance minister announced this week that the Royal Canadian Mint will cease distribution of the coin this fall. Producing a penny costs about 1.6 cents, so the change is expected to save 11 million Canadian dollars annually. As our northern neighbors eliminate a coin deemed a nuisance, our Congress is considering transitioning to a coin many consider inconvenient. Replacing the dollar bill with a dollar coin would supposedly help combat the deficit. The Americans for George
coalition expresses concerns about the financial and practical implications of the change. A public opinion poll shows 97 percent believe the dollar bill is more convenient than carrying coins. The Government Accountability Office estimates over half a billion in net losses to the government during the first decade of the transition, and reports by the Federal Reserve Board and U.S. Treasury raise concerns that the long-term impact may also be negative. In the past 15 years, only one major country phased out a bill in favor of a coin: Russia. A penny for your thoughts?
(AP Photo/The Canadian Press)