Friday, June 16, 2006

Pennies and Sense

Let's assume for the moment that you own business that makes tools. One your products is a left-handed screwdriver and costs $1.50 to produce. This includes purchase price of materials, labor, and overhead, but not distribution.
No matter how much you try to push the value of your screwdriver, the highest price you can sell it for is $1.00. You lose 50 cents on each one.
Now, being a common sense-type individual, you rightly decide to stop manufacturing this item that costs more to make than in its final form is worth.
Enter the United States Government. A single penny, properly called a cent, costs about 1.5 cents to make. You are paying for this loss.
Isn't it time the government got smart (I know. That's a stretch) and stopped producing this item that is supposed to be money, not cost money?

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