President Trump has directed the Treasury Department to halt the production of new pennies, citing the cost of minting exceeding their face value. The move has ignited a debate about the economic and social implications of eliminating this long-standing currency.
President Donald Trump is taking a stance on a seemingly small issue, aiming to eliminate the production of the U.S. penny. Trump, in a recent post on his Truth Social platform, argued that the cost of producing a penny exceeds its face value by more than two cents, deeming it a wasteful expenditure. He instructed his Treasury Secretary to cease the minting of new pennies, advocating for a reduction in government spending, even at such a seemingly insignificant level. The U.S.
Mint itself acknowledges the rising cost of penny production, which has more than doubled in recent years, from 1.76 cents in 2020 to 3.69 cents in 2024. This cost increase is attributed to the composition of the penny, primarily zinc and copper, requiring a smelting process to shape the coins. Interestingly, printing a paper $1 bill costs less than producing a penny, highlighting the economic inefficiency of maintaining this particular denomination.While the decision to retire the penny rests with Congress, Trump's move raises questions about his executive authority in this matter. Some legal experts argue that the president's Treasury Secretary possesses the power to discontinue the penny based on existing federal statutes. However, others remain skeptical, pointing out that the penny's long history and significance in American society warrant a more comprehensive legislative approach. The potential implications of eliminating the penny are far-reaching. Should Trump succeed, the penny would become the 12th U.S. currency denomination to be retired, joining several other coins that were deemed obsolete or too costly to produce. The impact on consumers and the economy is also a subject of debate. Proponents of eliminating the penny argue that it would streamline transactions and reduce production costs. However, critics warn of potential price increases as businesses adjust to the absence of the penny and round up prices to the nearest nickel. They also raise concerns about the disproportionate impact on low-income Americans who rely heavily on cash transactions. Despite the increasing prevalence of digital payments, cash remains a vital tool for many Americans, particularly those who lack access to banking services. Eliminating the penny could create financial hardships for these vulnerable populations, making it crucial to consider the broader societal consequences of this seemingly minor change
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