The U.S. Mint is moving forward with plans to discontinue the production of pennies. For many, it seems like a logical move as the coins cost over three cents each to make. Why continue with something that loses money?
But the other side of the equation comes when you ask, “What’s next?” If retailers are forced to use more nickels — because people hoard the now-limited pennies or the supply just runs out — those cost the Mint 14 cents to make. We could solve one problem and create an even bigger one.
The same principle applies in many other situations. It may save short-term money to eliminate a position or program, but outsourcing the work ultimately costs more. Switching to electric cars may save fuel, but what about battery disposal? Moving into a small apartment sounds great, until you add in the ongoing cost of a storage unit. Eliminating a streaming service makes the monthly bill smaller, unless you add in the restaurant meals and entertainment you replace it with.
Before you make a substantial policy or process change, look down the road. What makes sense today may not make cents in the future.
