Archive - ELIMINATING THE PENNY (2024)

FAQs

Is the government getting rid of the penny? ›

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.

These numbers alone put both coins at risk though the cent is the leading candidate for the firing squad. What, then, will happen when the cent is abolished? For the general public, prices would then be rounded to the nearest nickel and special sale prices such as $9.99 will likely revert to $9.95.

"They were still making about 500 million pennies per year [in 2013]. It was costing them three cents or two and a half cents to make a penny, so it was just uneconomical to continue forward like that."

The government (therefore society) would save about $80 Million per year (the penny costs abut 1.6 cents to produce) in eliminating the penny.

Due to inflation, it costs more to make a penny than it's worth, so there may be savings to the government if they were retired. Critics say this could lead to prices being rounded up (from 99 cents to a dollar), while others argue consumers would probably break even in the long run.

Yes, financial institutions continue to allow customers to redeem or deposit their pennies as long as they are rolled or wrapped for deposit. Can I redeem pennies at a bank or financial institution that is not one that I do business with? It is unlikely so you should check with the financial institution first.

While many people and some leaders believe that coins are no longer important to the economy, this is simply not true. Coins still play an important role in society and it will likely remain so for many years to come.

(1) All pennies will be discontinued from the United States currency circulation and not replaced with a denomination of equal value. (2) The United States Mint will be directed to stop their production of the penny and not replace it with a denomination of equal value.

Several bills introduced in the U.S. Congress would have ceased production of pennies, but none have been approved. Such bills would leave the five-cent coin, or nickel, as the lowest-value coin minted in the United States.

But when they happen at the U.S. Mint, they could lead to an item ballooning in value by a factor of 2 million or more. That's what happened to several pennies produced in 1982, which pushed their value up from 1 cent to nearly $20,000.

Which coins will explode in 2024? ›

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.

The United States Code provides that "United States coins and currency (inclUding Federal reserve notes and circulating notes of Federal reserve banks and national banks) are legal tender for all debts, public charges, taxes, and dues.

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

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.