The Case for Phasing Out the United States Nickel Coin Which Costs More to Make Than It’s Worth

ForthrightcommentatorCGP Grey explained in detail why the United States nickel coin needs to be phased out. To make his case, Grey notes that the nickel costs more to make than it is actually worth and no longer has a primary use.

So nickels have nothing going for them. They lose money in the making and lose money in the handling. Making them make no sense as money at all. Tt's time to nix the nickel.

He also argues that by discontinuing the nickel, the government can actually save around $135 million per year.

It takes 5 cents of nickel to make a 5-cent nickel. Bad enough, but the cost of creating a coin is not just in the metal to mint it, but also in running the mint to print it. The molds, the machines, the manpower, the management. It all adds up to spending 14 cents to make a nickel and the government makes 1.5 billion nickels a year. Which, doing the math creates $75 million of nickels at a cost of $210 million. A loss of about $135 million a year incurred by the government.

Grey also addresses ditching the dime, as well as the penny but keeping the quarter, as that doesn't lose money.

So what if... we for once try to solve a problem before it's a problem and just ditch the dime ahead of its time. There's no need to wait until inflation drives the dime's value down until it's not just worthless but worth less than zero. Ee can get ahead of the inevitable and while ditching the penny and nickel, ditch the dime too. Keep only the quarter and have the world's best most simple uniquely American change system.

CGP Grey on the Death of Pennies