PHILADELPHIA — Back in 1793, a penny could get you a biscuit, a candle or a piece of candy. But these days, they are often cast aside or kept as lucky keepsakes.
However, the era of the penny is coming to an end. The U.S. Mint in Philadelphia is about to strike its last circulating penny as President Trump has canceled the 1-cent coin due to rising production costs that now surpass its value.
This final penny will be minted Wednesday, a response to costs that have reached nearly 4 cents per coin. Many Americans connect their memories to the penny, viewing it as a lucky charm or memento. Retailers, too, are voicing concerns as they prepare for a sudden shift in transactions.
For decades, advocates have argued for the penny's abolition while lamenting the abruptness of this decision. Jeff Lenard from the National Association of Convenience Stores states, We have been advocating abolition of the penny for 30 years. But this is not the way we wanted it to go.
Despite some consumers rounding prices to avoid shortchanging customers, banks have started rationing supplies of the coin, highlighting a perplexing situation amidst the call to phase out the pennies that have crowded financial circulation. The U.S. Mint's final penny production could save taxpayers approximately $56 million a year, but the absence of federal guidance on handling customer transactions raises concerns among retailers.
In a surprising twist, while the penny's cost of production has made it obsolete, the production cost-to-value ratio still remains better than that of the nickel, which is significantly more expensive to produce.
