US Ends Penny Production After 229 Years

The US Treasury Department announced the discontinuation of the penny's production, marking the end of an era for the coin that has been in circulation since 1793. The decision, made by the Trump administration, was finalized on Wednesday with the last penny being stamped at the Philadelphia Mint. According to the US Mint, over 13 billion pennies are produced annually, with a total face value of approximately $1.5 billion. The production of pennies accounts for a significant portion of the Mint's annual output, with the coin making up about 75% of the total coins produced. The discontinuation of the penny's production is expected to have a minimal impact on the overall economy, but it will likely affect the US Mint's revenue and employment. The decision to discontinue the penny's production comes as the US economy continues to shift towards digital transactions. According to a report by the Federal Reserve, cash transactions have been declining steadily over the past decade, with a significant decrease in the use of coins. The report notes that in 2020, only 22% of transactions were made in cash, down from 33% in 2010. The discontinuation of the penny's production is also seen as a move towards a more efficient and cost-effective currency system. The cost of producing a penny is approximately 1.7 cents, making it one of the most expensive coins to produce. The US Mint estimates that the discontinuation of the penny's production will save the government around $100 million annually. The US Mint has been facing financial difficulties in recent years, with a significant decline in revenue due to the decline in coin production. The Mint's revenue has been declining steadily since 2013, with a total revenue of $2.4 billion in 2020, down from $4.4 billion in 2013. The discontinuation of the penny's production is also expected to have an impact on the US Mint's employment. The Mint employs around 1,500 people, with many of them working in the production of coins. The discontinuation of the penny's production is expected to lead to job losses, although the exact number is not yet clear. The US Mint has stated that the penny will remain in circulation, and that the discontinuation of its production is not a move to remove the coin from circulation. Instead, the Mint plans to focus on producing more efficient and cost-effective coins, such as the nickel and dime. As the US economy continues to shift towards digital transactions, the discontinuation of the penny's production is seen as a step towards a more efficient and cost-effective currency system. However, the move also raises questions about the impact on employment and the potential for job losses in the US Mint.