Penny and nickel production might change in the not-so-distant future as Barack Obama looks into different ways to make the coins that won't cost as much money. On March 4, MSN Money reported that the President is looking into "alternative metals" to keep the price of producing pennies and nickels down.
"The budget does not include a specific cost savings figure for the potential changes but it identifies the rise of electronic commerce as a reason to review the coins' makeup and distribution. Obama's 2014 budget had pegged the cost of manufacturing a penny at two cents and the price of a nickel at 11 cents," reports MSN Money.
Penny and nickel production changes have been discussed in the past as have changes in the production of all U.S. coins (check out the video above for more). However, it is costing more and more money to create these coins which are (in turn) worth about 50% less. The U.S. Treasury is not looking to "phase out" pennies and nickels but many feel that something needs to be done to make the coins more cost effective.
"The fiscal 2015 budget, released on Tuesday, points out that the coins' manufacturing and circulation have not changed in decades and that the Treasury Department has been reviewing the coins' production," reports MSN Money.
Should penny and nickel production change? Do you think that using alternative metals will help the budget overall?
© Effie Orfanides 2014