Canada is getting rid of the penny. Good move, eh?
The Canadian government will discontinue the penny from circulation this year, and retailers will have to round to the nearest nickel to make sales. It is expected to save over $11 million from their federal budget annually, but it's estimated that because of transportation, production, and handling of the penny it is a $150 million drag on the economy.
“Pennies take up too much space on our dressers at home,” Finance Minister Jim Flaherty said. “They take up far too much time for small businesses trying to grow and create jobs.”
It costs the Canadian government 1.6 cents to make every penny, so this move is long overdue. Could America be next, or do too many people love the old Abe coin to let it go?
[Source - bloomberg.com]