The Penny, R.I.P.
The decision to stop producing the U.S. penny marks a notable shift in how Americans will handle small transactions. The move raises questions about the future of this coin and its place in daily commerce. What does this mean for everyday customers? Will people stop accepting pennies, or will they continue to be used for a long time? Understanding the reasons behind this decision helps shed light on its potential impact. The U.S. penny, a coin that has been a part of American currency for centuries, is facing its obsolescence due to a mix of economic and practical considerations. The primary reason is the cost. It simply costs more to make a penny than the penny is worth. In 2022, it cost 2.6 cents to produce a single penny, meaning the U.S. Mint was losing money on every coin it produced. This has been a consistent issue for years, with the production cost often exceeding the face value of the coin. This financial drain on the U.S. Treasury became unsustainable. Another factor in ...