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News or Noise: Does it cost more than a penny to make a penny?

June 14, 2017 11:23 PM

Last year, the U.S. Mint made more than 16 billion coins. 9.1 billion of those coins were Lincoln cents -- otherwise known as pennies.

And many reports circulating on social media claim the government is spending more than a penny to make a penny. Economically, that doesn't make sense.

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So I found the U.S. Mint's 2016 annual report. Flip to page 6 and the government is very transparent about its manufacturing costs admitting that pennies and nickels both cost more to make than they're actually worth.

According to the report, last year it costs 1.5 cents to make a penny and 6.32 cents to make a nickel. The report says the unit costs for both coins have remained above face value for the 11th consecutive fiscal year.

So the next time you see this claim on your social media feed go ahead and share it because as crazy as it sounds it is news.

Credits

Jennifer Mobilia

Copyright 2017 - WHEC-TV, LLC A Hubbard Broadcasting Company

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