Penny’s Last Stand: The End of an Era

PHILADELPHIA — Remember back in 1793 when a penny could buy you a biscuit or candy? Nowadays, they often just sit in drawers or jars, maybe as lucky charms, or, more likely, just forgotten. It seems their time might be running out.

The U.S. Mint in Philadelphia is gearing up for a change. On Wednesday, it was announced that the penny would no longer be minted, as the expense to produce one has surpassed its face value.

Production costs have climbed to nearly 4 cents per penny, which kind of makes the whole thing feel, well, outdated. President Trump remarked on this back in February, stating that the minting of pennies is a “waste.” It’s surprising, really—who would’ve thought a coin that once felt so essential could become so impractical?

Interestingly, the penny has been around since just after Congress passed the Coinage Act. Even though there are billions still in circulation, they play a minor role in today’s digital economy. As it stands, many, I think, still hold a nostalgic view of them. People view them as lucky or just fun to collect. But retailers have been sounding the alarm lately about potential shortages as the phaseout comes on unexpectedly, leaving many wondering how to manage customer transactions.

Some businesses have begun rounding prices to avoid confusion, while others are asking customers to bring in spare change. A few have even taken creative routes, offering perks like free drinks for those who bring in a bunch of pennies.

Jeff Leonard from the National Association of Convenience Stores noted last month that while they’ve been advocating for eliminating the penny for decades, this approach isn’t what they envisioned. Paradoxically, some banks are starting to ration coin supplies, trying to manage what many consider an overwhelming amount of coins being produced all these years. Strangely enough, about half the coins minted over the last century have been pennies.

Meanwhile, U.S. Treasury officials were scheduled to be in Philadelphia for the final production efforts. It’s estimated that discontinuing the penny could save around $56 million a year. Oddly enough, though the penny may soon fade away, the cost-to-value ratio is still better than that of the nickel, which costs nearly 14 cents to produce. In comparison, dimes are cheaper to make, at about 6 cents, and quarters cost close to 15 cents.