The federal government wants to leave Canadians penniless. Eventually. Beginning this week,the one-cent coin will no longer be produced by the Royal Canadian Mint.
The main reason for the discontinuation is the rising cost of production. It costs 1.6 cents to produce a penny, and that doesn’t include the handling costs it imposes on retailers and financial institutions.
A 2008 study conducted by Quebec-based bank Desjardins estimated the penny cost the Canadian economy approximately $150 million annually.
But phasing out the penny brings its own costs, and McMaster economist William Scarth figures it will take…