By Laura Dinsdale
The penny is used everyday by many US citizens across the country every single day, according to an article by the US States Mint the penny is used 300 billion times daily. But if it’s so popular why is it getting taken away? Some may think the extinction of pennies could be leading to something bigger, and others think it means nothing. This article will explain why the pennies disappear, the problem of inflation, what it means for us with the pennie disappearing, and if cash as a whole will be disappearing.
Many people are shocked that the penny is getting removed from reproduction., and the number one question relating to the disappearance is why is it going away? The answer is the cost of making it has increased, and now making a penny costs 3.69 cents. An article from KXXV talks about economist Bill Dendy saying “the United States spent more than $85 million manufacturing pennies in 2024 alone.” So due to this Trump decided it was costing too much to make the penny so he decided to get rid of it all together.
What this means for us and for the still popular penny is something many may wonder. According to a US mint official, Beach made a statement about the penny extinction and what it means. Beach stated “We’re saying goodbye to the penny today, but let me just be crystal clear, like I said, it’s still legal tender,” Beach said. “So you can still use it at your stores and retail outlets.” As for the last penny, Beach said they plan to auction that one off as well as the one that was struck before it. With this said it seems like pennies wont completely disappear but only stop being made considering they’re still legal and usable.
Inflation has become a newer issue nowadays and is something that connects to the penny problem and may be factoring in as a reason for their disappearance. According to The Washington Post, the penny removal decision was long overdue. It is a partial surrender to inflation. Officials say nothing will ever again cost a penny. Meaning money becoming worthless. This means the endless money printing simply erodes the value of the dollar, which we experience every day at higher prices.
So this leaves people wondering, is this the start of an end to cash money all together? An expert named Eswar from Brookings states “The end of cash is on the horizon, and it will have far-reaching effects on the economy, finance and society more broadly.”
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