Thread: 2012 Cent Error

Poll

Was it an error for the mint to make almost a billion Cents in 2012 rather than discontinue it.

good use of the polling feature

It costs our own government more than a penny to make a penny.

Now where's the sense in that

But you've gotta admit, those shield reverses are kind of snazzy.

I dis-like the coin as a whole. Too shiny, doesn't look like a real metal, looks cheap.
And I like the Lincoln Memorial better

I voted yes, it was a mistake, while the coin is costing more to produce then its nominal value, and there is no shortage of cents out there, why keep making more?

There are many years of USA coinage where there was not a demand for the denomination, so none were minted.

I would say that if it is costing 2 cents to make a cent, a cheaper answer if cents did start to become scarce, that the treasury could offer a quarter for 20 cents.

They would lose less money than by producing them, and if the mint went back to minting for the demands of commerce and collectors, we would soon have some lower mintage coins for the first time in about 100 years.

Originally Posted by VDBforDave

It costs our own government more than a penny to make a penny.

Now where's the sense in that

Yes, it does cost governments more for things than they get in return. How much in spoils did our Army bring back from Iraq ? Where's the sense in that. Or building dams, that's a real loser !

Just sayin'

Always the skeptic, I question the calculations that the mint is losing lots of money on the cent. Currently, the cent has USD$0.0051 in metal value. Thus, the mint makes a fluctuating proift of USD$0.0049 for every cent. If they make 1 billion cents in 2012, the fluctuating profit is USD$4.9 million. If the mint stops making the cent, it will need to shed a minimum of USD$4.9 million from its currently operating costs. Reduction in volume never leads to a proportional reduction in costs. The mint will still need to mint the other stuff. Thus, we won't save as much as we think when we stopping making the cent. Now, let's say that the cent cost USD$0.02 to make and it is sold to the public for USD$0.01. It will cost our government a total of USD$10 million in 2012. I think the impact on inflation will have more of an impact than the USD$ 10 million on our economy. In my opinion, it is common sense to keep cents. As I first started saving pennies as a 10-year old, I would say that my opinion is heavily tainted from my collecting them for the past 43 years.

Originally Posted by Phil Ham

Always the skeptic, I question the calculations that the mint is losing lots of money on the cent. Currently, the cent has USD$0.0051 in metal value. Thus, the mint makes a fluctuating proift of USD$0.0049 for every cent. If they make 1 billion cents in 2012, the fluctuating profit is USD$4.9 million. If the mint stops making the cent, it will need to shed a minimum of USD$4.9 million from its currently operating costs. Reduction in volume never leads to a proportional reduction in costs. The mint will still need to mint the other stuff. Thus, we won't save as much as we think when we stopping making the cent. Now, let's say that the cent cost USD$0.02 to make and it is sold to the public for USD$0.01. It will cost our government a total of USD$10 million in 2012. I think the impact on inflation will have more of an impact than the USD$ 10 million on our economy. In my opinion, it is common sense to keep cents. As I first started saving pennies as a 10-year old, I would say that my opinion is heavily tainted from my collecting them for the past 43 years.

The government does not "make" or "lose" money on any coinage. I keep repeating this and it keeps flying over peoples heads, but if the government wants money, it prints it.

Strictly on cost efficiency, such as it is worth, even if it cost each cent 5 cents to make, as long as they aren't melted down in mass, they are cost efficient. Coinage is not something the government uses for money. It is a service they provide. If a cent cost 5 cents and it is used for 6 years or more, it is very efficient.

The problem is much more selfish. I'm sick of them laying around my house and billions of them are just being wasted with no commercial service being provided whatsoever.

Originally Posted by mrbrklyn

The government does not "make" or "lose" money on any coinage. I keep repeating this and it keeps flying over peoples heads, but if the government wants money, it prints it.

And that is one of the biggest problems in America's economy today.

Originally Posted by Cazkaboom

And that is one of the biggest problems in America's economy today.

I wish. Then it would be easy to fix.

Originally Posted by mrbrklyn

The government does not "make" or "lose" money on any coinage. I keep repeating this and it keeps flying over peoples heads, but if the government wants money, it prints it.

Strictly on cost efficiency, such as it is worth, even if it cost each cent 5 cents to make, as long as they aren't melted down in mass, they are cost efficient. Coinage is not something the government uses for money. It is a service they provide. If a cent cost 5 cents and it is used for 6 years or more, it is very efficient.

The problem is much more selfish. I'm sick of them laying around my house and billions of them are just being wasted with no commercial service being provided whatsoever.

I will disagree with you on this one. The government (e.g. us) makes money on any coinage that it mints that eventually is taken out of circulation for any reason other than them melting it back as long as it costs less to make than the face value on the coin. It is like an IOU that is never cashed in.

Originally Posted by Phil Ham

I will disagree with you on this one. The government (e.g. us) makes money on any coinage that it mints that eventually is taken out of circulation for any reason other than them melting it back as long as it costs less to make than the face value on the coin. It is like an IOU that is never cashed in.

The government can NOT make a profit. This is not an opinion. It is a fact.

If the government can't make a profit, why did they sell the 2012 ASE set for $149.95? Did it cost them that much to make it? The answer is no. They made a profit. You may call it something different like "paying down the debt" but it is a profit to me.

Business Operating Profit = Sales Price - Fluctuating Costs - Manufacturing Costs - Indirect Costs - Sales & Marketing Costs

Originally Posted by Phil Ham

If the government can't make a profit, why did they sell the 2012 ASE set for $149.95? Did it cost them that much to make it? The answer is no. They made a profit. You may call it something different like "paying down the debt" but it is a profit to me.

Business Operating Profit = Sales Price - Fluctuating Costs - Manufacturing Costs - Indirect Costs - Sales & Marketing Costs

Because there are idiots in congress who are stupid and think that government is like a bodega. But as I said, it is NOT an opinion. It is a FACT. The Modern government can not make a profit. Confusing this makes people blind and ignorant about the basic facts that affect their lives.

State Governments are another matter.