The cost for the U.S. government to produce pennies and nickels is more than the face value of the coins, a government watchdog points out.
Judicial Watch, in a statement Wednesday, called it an “egregious waste” and a “fleecing.”
The U.S. Treasury’s practice, Judicial Watch said, “means hundreds of millions of coins have been sold well below cost.”
“Incredibly, the government has knowingly done this for at least eight years and actually documented the egregious waste in several reports though nothing has been done to stop it,” Judicial Watch said. “In fact, both the Treasury and the Bureau of the Mint have extensive documentation on this, yet it continues today.”
Judicial Watch cited a 17-page 2012 U.S. Treasury report that presented the key information in the closing paragraphs.
“Challenges also exist with coin production,” the report said. “In recent years, the [U.S.] Mint reported that the cost of producing penny and nickel coins were double their face value and that metal prices have caused the production costs to be higher than the coins’ face value for the past six years.”
The report said Treasury “also suspended production of the dollar coins to save money in production and storage costs due to excess supplies on hand and low demand for the coins.”
Written by BOB UNRUH
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