Last week, I completely forgot about my Rando Thursday Whatever. Yikes. So this week’s edition will be extra rando. Yes!
I picked up a Reader for the first time in months. Politically, it swings consistently left but at least I don’t feel dumber after reading it. In today’s straight dope, we are reminded of the uselessness – no, harmfulness – in continuing to manufacture pennies (and, egad, nickels).
Q: Long ago you determined that it still cost less than a penny to mint a penny. It’s a far different world today, and I find it hard to believe that the cost of minting a penny is less than the face value.
A: It’s true that as of 1998, when last we discussed this topic, minting pennies wasn’t a losing proposition. Each one then cost about four-fifths of a cent to manufacture, giving them a low but still positive profit margin — or seigniorage, as it’s known in the currency biz — of 20 percent. But that was then. Stamping out a one-cent piece now costs about 1.25 cents. Given pennies’ vestigial role in the economy, the government’s insistence on minting them has gone from pointless atavism to expensive hobby.
…And the penny’s not even the big problem. The reigning negative-seigniorage champ is the humble nickel, which now has an extravagant price tag of about 7.7 cents.
You probably have heard of the stink Northwestern graduates made when they heard who their commencement speaker is going to be. Yes, it’s Mayor Daley and hey, I sympathize. I certainly wouldn’t want, nor find inspiration in, such a bastion of cronyism and slush funds. But, come on, these brats are complaining for all the wrong reasons:
“I thought we’d have someone with a much higher profile, especially after [Northwestern] President Bienen hyped it so much,” said senior Simon Lu. “I thought it would be someone with a national or international profile…I was hoping someone more famous would show up.”
And now I’ll leave you with a classic skit from Mr. Show, which isn’t at all public, nor worthless for that matter:
