Ask SAM: Is the government going to stop making pennies? (2024)

FAQs

Will the U.S. government stop making pennies? ›

The U.S. Mint has no plans to discontinue the penny, and such a move would require congressional approval. However, the “Penny Debate” continues in the United States, with pro- and anti-penny advocates both making some pretty solid points in their arguments.

With a 2022 production of an estimated 6,359,600,000 pennies, this results in an annual loss for the U.S. government of around $110 million. Also, as the price of the raw materials from which the penny is made exceeds the face value, there is a risk that coins will be illegally melted down for raw materials.

Those who favor keeping the penny believe the penny plays an important role in keeping down the costs of the goods and services we buy. If there were no pennies, stores and restaurants would round up to the nearest nickel. This means consumers would end up paying $0.55 for something that should cost only $0.51.

Abstract. Removing the penny from circulation will have significant adverse direct effects on consumers. Simulations show that the resulting need to round prices will generate a rounding tax of no less than $600 million a year. The inflationary impact of rounding will probably be small.

Is There a Coin Shortage? According to The Federal Reserve, as of July 2023 there is no longer a coin shortage. The overall money shortage that the pandemic created meant that cash and coins alike were in short supply. Many businesses had to change their cash handling practices to align with new safety protocols.

There is not a coin shortage. However, the circulation of coins was significantly disrupted due to the COVID-19 pandemic. More than half of coins in the U.S. are sitting in consumers' coin jars in their homes.

Pennies are made of zinc and copper, and zinc can be harmful: Zinc mining and industrial use has negative environmental and health impacts. 4 During mining, smelting, and other industrial processes, zinc can leach into the soil, water, and air, and cause health concerns for those living nearby.

The penny has practically no value and should be taken out of circulation just as other coins have been in US history. The process of making pennies is costly both financially and environmentally. Eliminating pennies would save time at the point of purchase without hurting customers or businesses financially.

Coins in Circulation

The penny, nickel, dime, and quarter are the circulating coins that we use today.

The penny has become a part of the American economy and is vital to the definition of a free market. In a free market, the seller has the ability to set the prices, however, removing the penny will cause the prices everything to rounded either up or down.

Will pennies be worth anything in the future? ›

They aren't being made anymore, so even if they aren't a rare or valuable year, they might be worth something in the future. If they're in great condition, store your coins carefully to keep them that way.

You can visit your local grocery store or bank and they should have a machine that can count your pennies (and other coins) and give you cash for them. Sometimes they charge a fee, but banks are usually able to do it for free. Below is a link to a site that can tell which banks have such services.

Key Takeaways. Governments can use wage and price controls to fight inflation. These policies fared poorly in the past, leading governments to look elsewhere to control the economy. Governments may pursue a contractionary monetary policy, reducing the money supply within an economy.

The last penny was minted in Winnipeg on May 4, 2012. The cause of death for the penny was likely the drop in its purchasing power, as inflation took its toll. An 1870 penny would be worth about 31 cents today, adjusted for inflation.

The final penny was minted at the RCM's Winnipeg, Manitoba, plant on the morning of May 4, 2012, and was later entrusted to the Bank of Canada Museum in Ottawa. Existing pennies will remain legal tender indefinitely; however, pennies were withdrawn from circulation on February 4, 2013.

The penny was one of the first coins made by the U.S. Mint after its establishment in 1792. The design on the first penny was of a woman with flowing hair symbolizing liberty. The coin was larger and made of pure copper, while today's smaller coin is made of copper and zinc.