The US Mint produces over 3.2 billion pennies annually, but at a cost of more than twice the coin’s face value. In an attempt to reduce waste, President Donald Trump has ordered his Treasury Secretary to stop producing new pennies.
According to the U.S. Mint, the cost of making a single penny has risen to 3.69 cents, with the majority of its composition being zinc and copper. Printing a paper $1 bill is cheaper, at 3.2 cents.
The move could lead to increased production of nickels, which would also result in higher losses for the Mint. Economists argue that eliminating the penny would cause prices to rise, affecting consumers. The majority of Americans want to keep the penny, and its discontinuation would be a significant change to US currency.
Experts debate whether Trump’s executive order is constitutional and lawful. Laurence H. Tribe, a Constitutional Law expert, believes it is entirely lawful, while Mark Weller, executive director of Americans for Common Cents, disagrees, stating that it could lead to unintended economic consequences.
Source: https://abcnews.go.com/US/trumps-order-scrap-penny-make-cents-expert/story?id=118654681