Imagine reaching into your pocket for spare change, only to realize pennies are nowhere to be found. For many Americans, this could soon be reality. In early 2025, President Donald Trump directed the US Treasury to stop minting new pennies, sparking heated debates across the nation. Is the US really going “penniless”? Why does Trump want to halt penny production, and what does this mean for everyday Americans? Let’s dive into the story behind this bold move, blending hard facts, expert opinions, and real-life perspectives to uncover the truth.
Why Pennies Are on the Chopping Block
The Cost of a Penny: More Than Meets the Eye
Pennies might seem like small change, but they’re a big drain on the US economy. According to the US Mint’s 2024 annual report, each penny costs 3.69 cents to produce and distribute—over three times its face value. In 2024 alone, the Mint churned out 3.2 billion pennies, racking up an $85.3 million loss. That’s money taxpayers are footing for coins many toss into jars or leave on sidewalks.
Featured Snippet Alert: It costs 3.69 cents to make a penny, leading to an $85.3 million loss in 2024, per the US Mint’s annual report.
Trump, alongside Treasury Secretary Scott Bessent, argues this math doesn’t add up. “It costs about three cents to make one cent—even in Washington, that math doesn’t work,” Bessent said in February 2025. The push to halt production aligns with Trump’s broader cost-cutting agenda, amplified by Elon Musk’s Department of Government Efficiency (DOGE), which flagged penny production as wasteful.
A Nod to Inflation and Economic Realities
The penny’s plight isn’t just about production costs—it’s a symptom of inflation. As X user @GregMannarino pointed out, “Trump discontinues the penny, calls it ‘wasteful,’ as it now costs more than 3 cents to make one penny… THIS IS CALLED INFLATION!” A penny’s purchasing power has plummeted since its debut in 1793. Back then, a penny could buy a loaf of bread; today, it barely covers a fraction of a candy bar. With inflation eroding its value, many argue the penny is more sentimental than practical.
The Environmental and Practical Case Against Pennies
Environmental Toll of Penny Production
Minting pennies isn’t just costly—it’s environmentally taxing. Pennies are made of copper-plated zinc, and mining these metals generates carbon emissions and pollution. The process strains natural resources, prompting environmentalists to support Trump’s directive. For example, Canada phased out its penny in 2012, citing similar environmental and economic concerns, and hasn’t looked back.
Are Pennies Even Useful Anymore?
Think about the last time you used a penny. Chances are, you didn’t. Many Americans hoard pennies in jars or leave them at cash registers. Retailers like Walmart and Target often round transactions to the nearest nickel, a practice common in countries like Australia and New Zealand, which ditched their one-cent coins years ago. A 2023 survey by YouGov found 59% of Americans support eliminating the penny, citing its inconvenience in daily transactions.
Quick Fact: 59% of Americans favor scrapping the penny, per a 2023 YouGov survey.
Trump’s Directive: Authority and Opposition
Does Trump Have the Power to Stop Penny Production?
Trump’s order to halt penny production sounds decisive, but it’s not that simple. The US Treasury Secretary oversees the Mint, but discontinuing a coin’s circulation typically requires congressional approval. Past efforts to eliminate the penny, like the 2017 “Cents and Sensibility Act,” fizzled out in Congress. Legal experts, like Professor Sarah Coiner from Georgetown University, note, “The President can influence Mint priorities, but permanently ending penny production needs legislative backing.”
With Republicans controlling both chambers in 2025, Trump’s directive might gain traction. However, consumer groups worry about the fallout, particularly for low-income Americans who rely on cash transactions.
Consumer Concerns: Will Prices Rise?
Opponents argue scrapping the penny could nudge prices upward. If transactions are rounded to the nearest nickel, a $1.99 item could become $2.00. A 2024 study by the National Retail Federation estimated rounding could cost consumers $600 million annually, disproportionately affecting those who use cash over digital payments. For example, Maria, a single mother in Chicago, shared, “Every cent counts when you’re budgeting for groceries. Rounding up could mean less food on the table.”
Historical Context: Pennies Through the Ages
Pennies have been part of American life since 1793, evolving from pure copper to today’s zinc-heavy design. They’ve featured Abraham Lincoln since 1909, making them a cultural icon. But their relevance has waned. Economist Jeff Sommer, in a 2024 New York Times op-ed, wrote, “The penny’s sentimental value is undeniable, but its economic utility is near zero.” Countries like Canada, which eliminated its penny in 2012, saw minimal disruption, suggesting the US could follow suit.
The Nickel Problem: A Bigger Coin Conundrum
Pennies aren’t the only coins bleeding red ink. Nickels cost 13.78 cents to produce, leading to a $17.7 million loss in 2024. If Trump’s penny ban succeeds, nickels could be next. However, phasing out both coins would require major legislative and logistical changes, like recalibrating vending machines and updating pricing systems.
What Happens If Pennies Disappear?
Rounding Transactions: A New Normal?
Without pennies, cash transactions would likely round to the nearest nickel. A $4.97 purchase might round to $4.95, while $4.98 could become $5.00. Canada’s experience shows rounding is generally neutral for consumers, as it balances out over time. Retailers might absorb small differences to stay competitive, but low-income shoppers remain wary.
Digital Payments: The Future of Transactions?
The penny’s demise could accelerate the shift to digital payments. With 80% of US transactions already cashless (per a 2024 Federal Reserve study), younger generations may barely notice the change. However, rural areas and cash-dependent communities could face challenges. For instance, small-town vendor Tom in Nebraska said, “Cash is still king here. Losing pennies could complicate things.”
Expert Insights: Weighing the Pros and Cons
Economist Dr. Emily Tran from Stanford University supports ending penny production, stating, “The penny’s costs outweigh its benefits. Redirecting Mint resources to higher-value coins makes fiscal sense.” Conversely, consumer advocate Lisa Ray argues, “Rounding could hit marginalized groups hardest. We need protections to ensure fairness.”
Table: Pros and Cons of Eliminating the Penny
| Pros | Cons |
|---|---|
| Saves $85.3 million annually | Potential price rounding could cost consumers $600 million yearly |
| Reduces environmental impact | May disproportionately affect low-income, cash-dependent individuals |
| Aligns with global trends (e.g., Canada, Australia) | Requires congressional approval, which could delay implementation |
| Simplifies transactions in a digital economy | Cultural loss of an iconic coin featuring Abraham Lincoln |
FAQs About the Penny’s Future
Why does it cost so much to make a penny?
Pennies are made of copper-plated zinc, and rising metal prices, combined with labor and distribution costs, drive production expenses to 3.69 cents per coin.
Will prices go up if pennies are eliminated?
Possibly. Rounding to the nearest nickel could increase costs for some transactions, potentially costing consumers $600 million annually, per the National Retail Federation.
Has any country successfully eliminated its penny?
Yes. Canada phased out its penny in 2012, and Australia and New Zealand eliminated their one-cent coins decades ago, with minimal economic disruption.
Can Trump stop penny production without Congress?
Not permanently. While the Treasury can adjust Mint priorities, discontinuing penny circulation requires congressional legislation.
The Bigger Picture: A Cashless Future?
Trump’s push to halt penny production is more than a cost-cutting stunt—it’s a reflection of a changing economy. With inflation eroding coin value, digital payments rising, and environmental concerns growing, the penny’s days may be numbered. But the transition won’t be seamless. For every American cheering the end of pocket clutter, another worries about rising costs or losing a piece of history.
So, is the US going “penniless”? Maybe not yet, but the writing’s on the wall. Whether you’re Team Penny or ready to say goodbye, one thing’s clear: this debate is about more than loose change—it’s about where America’s economy is headed next.
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