"Trump Banned the Penny?! The Shocking Truth Revealed!"

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Trump Bans the Creation of the Penny: A Historic Decision

On February 9, 2025, former President Donald Trump made headlines by directing the U.S. Treasury Department to halt the production of the penny. Labeling the one-cent coin as "wasteful and outdated," Trump’s decision marks a turning point in U.S. monetary history, aligning with long-standing calls from economists and policymakers to eliminate the penny due to its high production costs and low purchasing power.

This move has sparked widespread debate, with some praising the decision for its cost-cutting benefits, while others argue it may cause confusion in retail transactions. This article delves into the economic, historical, environmental, and political factors that led to this decision and what it means for the future of U.S. currency.

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The Cost of Producing Pennies

For years, the cost of producing pennies has exceeded their actual value. According to data from the U.S. Mint, in 2024, it cost approximately 3.69 cents to produce each one-cent coin, creating a significant financial loss for the federal government.

• In 2024 alone, the Treasury lost $85.3 million from penny production.
• Since 2006, the government has lost over $1.2 billion on penny production due to rising material and labor costs.

The main factor driving this cost increase is the price of raw materials. A modern U.S. penny is made of 97.5% zinc and 2.5% copper. However, the prices of these metals have risen over the years due to global demand, inflation, and supply chain disruptions.

Many economists argue that eliminating the penny would save taxpayers millions of dollars annually, which could be redirected to other government programs.

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The Declining Use of Pennies in Everyday Transactions

Beyond production costs, pennies have become increasingly irrelevant in modern commerce. With inflation continuously reducing their purchasing power, they are often seen as a nuisance rather than a useful form of currency.

• A penny today buys less than 1/30th of what it could purchase in 1950.
• Most vending machines, parking meters, and public transit systems no longer accept pennies.
• Many retailers already use rounding systems in cash transactions, making the penny less necessary.

A study from the National Bureau of Economic Research found that Americans spend more time handling pennies than they are worth. Some retailers have even refused to accept pennies, arguing that they slow down transactions.

With digital payments and cashless transactions becoming more common, the demand for physical coins has declined. Many view the elimination of the penny as an inevitable step toward modernizing the U.S. monetary system.

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Public and Political Reactions

The decision to stop producing pennies has received mixed reactions from the public and political figures.

Supporters of the Ban

Many economists, policymakers, and business leaders support the move, arguing that eliminating the penny:

• Saves taxpayer money (since it costs more to make than its face value).
• Reduces environmental waste from mining and metal refining.
• Speeds up transactions in cash-based businesses.

Even some Democratic leaders, such as Colorado Governor Jared Polis, have expressed support for Trump’s decision, calling it a “commonsense move” that should have been done years ago.

Opposition to the Ban

However, some consumer advocates and traditionalists are against eliminating the penny, citing concerns such as:

• Rounding prices up may lead to higher costs for consumers, particularly in cash transactions.
• The penny holds historical and sentimental value, featuring Abraham Lincoln since 1909.
• Charities that rely on penny donation drives could be affected.

Some businesses fear that eliminating the penny will complicate pricing strategies and create confusion among customers who still use cash regularly.

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A Global Perspective: Other Countries That Eliminated Pennies

The U.S. is not the first country to discontinue its smallest-denomination coin. Several other nations have already taken this step with minimal economic disruption:

• Canada (2012) – The Canadian government phased out the penny due to high production costs. The transition was smooth, with businesses rounding cash transactions to the nearest nickel.
• Australia (1992) – Australia eliminated its one-cent and two-cent coins, leading to no significant long-term economic impact.
• New Zealand (1989) – The country stopped minting one-cent and two-cent coins, moving toward more efficient transactions.
• Sweden & Norway – These countries phased out their smallest coins, encouraging digital payments instead.

Each of these countries saw cost savings and faster transactions as a result, with no major consequences for consumers. The U.S. is now following a similar path, aiming to modernize its currency system while saving taxpayers money.

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What Happens to Existing Pennies?

Even though the U.S. Mint will no longer produce new pennies, existing pennies will remain legal tender and continue to circulate. Over time, as pennies wear out and are removed from circulation, their presence in everyday transactions will decline.

Experts predict that within a decade, pennies will become scarce, similar to how half-cent coins disappeared in the 1800s. Some people may start hoarding pennies as collectibles, increasing their rarity and potential future value.

In the meantime, businesses and consumers will need to adjust to cash rounding practices, just as other countries have done successfully.

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Future of Other Coins: Will the Nickel Be Next?

The elimination of the penny has also sparked discussions about the future of the nickel.

Currently, the cost to produce a nickel is 11.2 cents, meaning that it is also produced at a loss. Some experts argue that if the government is eliminating the penny due to cost concerns, the nickel could soon face the same fate.

Alternatives being considered include:

• Changing the metal composition of nickels to reduce costs.
• Phasing out the nickel entirely, rounding cash transactions to the nearest dime.

As inflation continues to erode the value of small coins, future administrations may consider additional reforms to the U.S. coinage system.

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Conclusion: A Step Toward Modernization

Donald Trump’s decision to ban the creation of pennies marks a significant shift in American currency policy. While the move has generated debate, economic experts agree that it will save taxpayers money, reduce waste, and modernize U.S. financial transactions.

With other countries already phasing out low-value coins successfully, the U.S. is following a global trend toward more efficient monetary systems.

As pennies gradually disappear from circulation, businesses and consumers will need to adapt, but history shows that such transitions are smooth and beneficial in the long run.

The bigger question now is whether the nickel will be next.

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