Send us a text The make-or-buy decision is a fundamental aspect of economics that applies to businesses, households, and nations, with the U.S. penny providing a fascinating case study in economic inefficiency. • It costs 2.72 cents to manufacture one penny, representing a loss of 1.7 cents per coin to taxpayers • The U.S. Treasury loses between $85-120 million annually due to penny production costs • There are approximately 130 billion pennies in existence, but only 5-10% actively circulate • Most pennies end up sitting idle in jars, drawers, and coin collections after minimal use • Arguments against pennies include production costs, inflation reducing value, transaction inefficiency, and environmental impact • Canada successfully eliminated the penny in 2012, rounding cash transactions to the nearest five cents • A potential alternative: buying back existing pennies at a price below manufacturing cost • The Federal Reserve could implement a system paying $1.50 for 100 pennies, still saving over the $2.72 production cost • This system would utilize the billions of idle pennies while maintaining the existing distribution infrastructure Grass seed: Expensive! Book'o'da'week: Abortion, Baseball, and Weed Join us next week on Tuesday, July 1st for a new episode with a fresh topic, letters from listeners, and of course, a hilarious new TWEJ. If you have questions or comments, or want to suggest a future topic, email the show at
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