Minting Pennies and Nickels Costs U.S. Nearly $180 Million Despite Low Value

Producing pennies and nickels cost the U.S. Mint $179 million in 2023, while the pennies cost 3¢ each to make and nickels cost 11.5¢.

Cash remains important for lower-income and unbanked individuals, as basic banking services and debit/credit cards can be expensive or inaccessible.

Eliminating the penny has been proposed for decades, but the government wants to keep some hard currency circulating rather than having it sit unused.

Economists argue $100 bills facilitate illegal activity and should be eliminated, with 80% circulating overseas, but Americans still use cash for 18% of transactions.

Cash serves as a backup payment option during disasters, offers consumer choice benefits, and lets people make "difficult" purchases more comfortably.