It has been discussed for years -- eliminating the penny or one-cent coin. And now, Canada is going to eliminate their penny. Canada's Mint says it costs 1.6 cents to manufacture each cent, and that costs their government $11-million a year.
The Canadian Mint also concedes that the elimination of pennies might force prices to be rounded out to the nickel -- and usually that means a price hike and not a price decrease.
Sure there are still billions of Canadian pennies in circulation, but like here in the USA many pennies aren't recirculated and are left in jars, drawers, on counters, and even left on sidewalks and in the gutter next to parking meters.
So should the USA also eliminate the penny?
Keep in mind that Canada will still have "one cent" pricing. Says the Mint of Canada:
"While the cent will remain Canada's smallest unit for pricing goods and services, the Royal Canadian Mint will no longer distribute pennies as of Fall 2012. The penny will retain its value indefinitely and can continue to be used in payments. However, as pennies are gradually withdrawn from circulation, price rounding on cash transactions will be required."