(WBBM NEWSRADIO) — How would you feel about the United States getting rid of the penny? Who would think of such a thing? A member of the Federal Reserve, and maybe our own State Treasurer.
Illinois State Treasurer Michael Frerichs hosted the conference of the National Association of State Treasurers in Chicago this past week. Austen Goolsbee, President of the Chicago Federal Reserve Bank was one of the speakers.
In a featured conversation, Frerichs asked Goolsbee his thoughts on the idea of doing away with the penny. Goolsbee, triggered the question because of an article he wrote suggesting we think about getting rid of the penny coin.
Goolsbee pointed out that it costs the government three cents to make each one cent coin, meaning they are minted at a loss.
“I told him, ‘Hey, you’re in the Land of Lincoln right now. Any effort to do away with Abraham Lincoln on a currency, hopefully you have a backup plan,” Frerichs said.
Among Goolsbee’s ideas, keep the penny but make it worth five cents. All of this is just a thought, but an interesting topic for discussion.