The penny, first minted in 1793, will no longer be produced following a federal decision to discontinue the coin. The move after years of debate over the coin’s rising cost and decline in usage. The final batch was produced at the Philadelphia Mint on Nov. 12.
“It’s a good decision because the cost of producing a penny is simply more than one cent, so you’re losing money by offering that unit of exchange,” social studies teacher Joseph Dwyer said. “It was a rational economic decision to no longer produce the penny.”
The main concern over the production of the penny was its imbalance costs, which many believe was a valid reason to discontinue its minting. In 2024, the U.S. Mint produced 3.2 billion pennies at a cost of 3.7 cents per coin, resulting in a $85.3 million dollar loss to taxpayers.
“Given the economic idea that the government was literally losing money every time they minted a penny, I don’t think [continuing production] would have been worth it,” sophomore Sarah Hanna said.
Inflation was also a major reason behind the decision to discontinue the penny. When the penny first entered circulation, it had significant purchasing power. A single penny in 1792 could purchase an equivalent of 32 cents of items today. Over time, the penny has greatly diminished in value.
“The worth of the penny, the only reason the penny has worth, is the amount of items that it can buy,” Dwyer said. “Throughout history, inflation eats away at our purchasing power, so the fact that we can no longer use a penny does prove that there’s long-term inflation.
With the penny no longer in production, businesses providing exact change are scrambling to find an immediate solution. Many retailers and corporations have begun planning to round totals to the nearest five cents, a system already used in Canada, Australia and several European countries.
“It was mainly because of inflation that the penny became irrelevant,” sophomore Hudson Hu said. “This move does kind of put the nickel into the position of the penny. I want to see if eventually we’ll just phase out the nickel too and then just keep phasing out coins one-by-one.”
As cost concerns and inflation fueled the decision to end penny production, some discussion has been brought up whether the change may challenge sentimental or historical significance.
“Lincoln is on the five-dollar bill,” social studies teacher Annie Daggett said. “There’s already a level of respect there; removing the penny might make it more valuable to some eyes.”
While nostalgia and inanimate value surrounding the penny was of concern, some students said the emotional value doesn’t outweigh reality.
“Even though Lincoln is such an iconic figure on our currency, given the idea that we were losing money, I think it was logically a better argument to end its production,” Hanna said.
As the smallest coin leaves America’s currency system, students and staff said the change ultimately reflects the country’s shifting economic status rather than any cultural or political loss.
“We often don’t even use the penny,” Daggett said. “But I still think that people will acknowledge it more knowing that it’s gone.”
