If it costs more than 1 cent to make a penny, why doesn't the US make them smaller like the euro penny???

Question

Making the penny smaller really seems like it would be the answer. They are not used in vending machines, so what harm would come from it?

Answer 1

Good question.  My guess would be because of the fixed costs of buying new machines and making a new design (since they like to change the design of the money a lot), and it would take a lot of pennies to pay it off.  But it's a good idea.

Answer 2

Seignoriage - my friend!