Proposal to Eliminate Pennies

By Jessica DiNapoli and Rich McKay

Nour Ismail, a cashier at the All-Star Deli & Grocery in Manhattan, expressed that the few pennies collected in the tip jar are seen more as a nuisance than a reward. “Pennies don’t matter,” he stated, reflecting a broader sentiment recently echoed by U.S. President Donald Trump. Trump announced via his Truth Social platform that he directed the U.S. Treasury to cease penny production, reigniting a debate over the coin’s utility.

Critics argue that pennies are wasteful, citing successful elimination in countries like Canada. According to the Mint’s report, producing one penny cost 3.69 cents last year, a substantial increase due to rising material costs.

Larry Jackson, a lifelong numismatist, supported Trump’s proposal, noting the reluctance of people to use pennies and the trouble in converting significant quantities into value. Despite Trump’s announcement, it remains uncertain if he has the authority to halt penny production, as the Mint operates under Congressional mandate.

Supporters of the penny contend that it serves a crucial role in everyday transactions and charity, warning that its elimination could adversely affect consumers and disproportionately harm low-income groups. However, a 2007 Wake Forest study found that removing the penny would unlikely lead to increased consumer costs.

Economist Sean Snaith concurred, referring to the penny as a historical relic, suggesting that the nickel, which costs more to produce than it’s worth, should be the real concern in the currency debate. Canada’s approach in 2012 resulted in significant savings while ensuring that cash transactions were rounded off to the nearest five cents. Many, including Richie Figueroa of Staten Island, view the penny as outdated and troublesome, questioning its purpose in modern commerce.