U.S. 2012 Budget Wants to Make Cheaper Pennies, Dimes

#Money

Mon, Feb 20th, 2012 10:00 by capnasty NEWS

According to Time's Moneyland, the White House' $3.8 trillion, 2,000-page budget that was sent to Congress last week is asking the Treasury Department to "change the composition of coins to more cost-effective materials."

Why? Because it currently costs the federal government 2.4 cents to make a penny and 11.2 cents for every nickel. The special formula for making U.S. coins has stayed the same for the last 30 years. Changing that recipe could save more than $100 million a year.

Since 1982, our copper-looking pennies have been merely coppery. In the 1970s, the price of copper soared, so President Richard Nixon proposed changing the penny's composition to a cheaper aluminum. The plan didn't go anywhere until the Reagan administration successfully changed the penny's make-up. Today, only 2.5% of a penny is copper (which makes up the coin's coating) while 97.5% is zinc. In fact, our nickels, which are 75% copper and 25% nickel, have more copper in them than pennies do.

  702

 

You may also be interested in:

Silicon Valley Tries to Stop Tax Loopholes From Being Closed
Mt.Gox's Demise Could Potentially Threaten Bitcoin's Future
Despite Having So Many of Them, Lawyers Remain Expensive Because of Sticky Wages and Limited Discounting
Apple's Internal Audit Reveals 106 Children Employed at 11 Factories Were Making Its Products Last Year
"Oil supply capacity is growing worldwide at such an unprecedented level that it might outpace consumption."