On Feb. 10, 2025, the Trump Administration released an executive order to indefinitely halt the production of the one-cent coin, the penny. While the President and his Administration hailed the order as a monumental step towards reducing government waste, they have chosen the wrong area to chase down missing dollars. The penny is an icon of American currency, the one copper-colored coin in the sea of silver dimes, nickels, and quarters. It bears the visage of Abraham Lincoln, who many consider to be the United States’ greatest president, and as a coin, it is far more valuable as a symbol than a unit of currency.
Though the President claims production of the penny, which costs more to produce than the penny itself is worth, costs taxpayer dollars, he and his policy writers seem to have fundamentally misunderstood the effect of price rounding on the economy. In the current American economy, with the penny being the lowest measurable unit of currency, prices can look like $11.99 or $16.49. However, with the elimination of the penny, prices will be forced to round up to the next smallest unit of currency, the nickel (which also costs more to produce than it is worth…where is the consistency, Mr. President?), meaning prices with the beautiful nine-cent ending will now be forced to round up to the whole dollar. That $11.99 would become $12.00, and $16.49 would become $16.50. Not only is this an ugly change to fellow nine-cent enjoyers, but it is damaging to consumers. A one-cent difference may not seem like much, but one quick look at Canada reveals that those cents add up. Since Canada eliminated their own penny, penny rounding has cost consumers about 3.27 million Canadian dollars, or 2.5 million USD per year. If the president claims to care about Americans’ funds, hiking up prices for everyone is not the way to fix the issue.
Pennies also contribute to the collective good. Many charities, such as those funding cancer research or human rights initiatives, ask for shoppers’ spare pennies they sometimes get as change. Because pennies are admittedly not a coin many people willingly carry around, they will oftentimes donate a couple of cents, at little cost to them. Just like price rounding, what may seem like “just a couple” cents can quickly turn into thousands of dollars that go to good causes. Charities from the Leukemia and Lymphoma Society to the Salvation Army have raised hundreds of millions of dollars combined, funding needed assistance and research.
And, of course, the penny has immeasurable historical significance. The penny has existed as a coin since 1793, and Abraham Lincoln has been featured prominently on the obverse since 1909. Throughout its lifetime, the penny has undergone changes in its metallic composition, changes in its design and even changes in its color. In the modern day, the penny remains the only coin in constant circulation in a copper color, and one of the only coins to be different from the standard silver color seen on most other cent-value coins. It is an integral part of American history, and to discontinue it outright would be a major slap in the face to the coin’s sentimental value. If the logic of the Trump Administration holds, the nickel should also be discontinued, given it is even less cost-effective than the penny: is the government willing to strike down two of the nation’s most recognizable currency items, shifting the burden to consumer spending, and depriving certain charities of donations they would not otherwise in the name of taxpayer protections?
Not simply for the economic value of the penny, but also for what it means to the United States as a whole, the penny has been worth every cent spent on it, not that anyone would be saving too much otherwise. The Trump Administration should be carefully considering both the complex economic realities as well as the historical impact of this coin before discontinuing the storied penny.
