It’s been in the news recently that it costs more than 1 cent to make a penny, and it seems to be one of the reasons given for getting rid of it. But does it really matter? I thought the purpose of minting coins was not to create wealth, but to provide coinage to the population for use in monetary transactions.
Does the gov’t create significant (or any) wealth by simply minting coins and printing bills, when the cost is less than the face value of the money? Is the rising cost of creating pennies any more of a problem than, say, the rising cost of any other thing the gov’t has to buy, like pencils?