Why the U.S. penny won’t die like Canada’s

In what looks like another example of collateral damage from government austerity programs around the world, Canada recently announced it would halt producing its penny, saying that they are expensive to make(1.6 Canadian cents for each one-cent coin) and essentially worthless in today’s economy. Instead, the Canadian government is suggesting businesses round to the nearest nickel. Meanwhile, economists have wondered when the U.S. might make the same move. No time soon. While Canada may have saved $11 million a year by not making pennies, the U.S. is looking to save some $75 million a year by changing the metallurgical makeup of our coins, rather than ditching Honest Abe – a move that would probably cost consumers an extra $1.5 billion a year in rounded costs anyway.