The case against the penny
3rd December 2009
If the cost of assembling a Big Mac were higher than its selling price, McDonald’s would soon drop it from the menu. Capitalists know that when you’re losing money on each unit of production, you can’t make it up in volume. The lesson has dawned on the United States Mint, which reports that because of the high price of zinc and copper, manufacturing a penny now costs 1.38 cents.
This development brings to mind economist Ludwig von Mises’ observation about the causes of inflation. “Government,” he said, “is the only agency which can take a useful commodity like paper, slap some ink on it, and make it totally worthless.”
I remember when a penny was worth something. But that was a while ago.