The President of the United States Donald Trump ordered the treasures to stop minting new money, reviving the old debate about the value of a center coin.
Penny, Trump claimed on February 9th in a post on his social platform of truth, “wasteful”, because the cost for this far exceeds his currency value.
“We get rid of the waste from the budget of our large nation, even if it is a penny at once,” he wrote.
Why the pressure to retreat to the coin?
Although only one Cen is worth, each penny costs nearly four production cents, according to the US mint. This is due to the cost of raw material – mostly zinc – and casting procedure.
About 3.2 billion coins were forged in 2024, which means a production cost of $ 12.8 billion.
For centuries of inflation, the inflation has also made a penny, the first forged in 1793, almost obsolete. He became so insignificant that he was no longer even practical for the cheapest retail objects – like buttons or one piece of sweets.
“People don’t want them. They don’t use them, “said Larry Jackson, a 65-year-old coin merchant at the Reuters news agency.” They make them socks in cans and drawers and jars … even a bag of 30 pounds will not bring you $ 50. “
In addition, the use of little things tries to clog the retail transactions. If the cash registers can skip the number of pennies, they would save 2.5 seconds per checkout, according to a 2006 study from the National Association of Shopping.
Is there an argument to keep it?
That. Some advocates Penny claim that currency helps Keep price in check.
The companies, they claim, are more likely to round up the prices up than down without a trifle. This could have a marginal inflation influence.
In addition, they claim that the penny serves as a valuable source of financing of charity organizations: any single contribution can be small, but it all adds up.
Others point out that the abolition of the coin can force the government to throw out more nickel, an even greater financial burden. Worth five cents, the nickel costs 13 cents per piece.
Ultimately, most economists say the loss of Dena would have a negligible effect on consumers. This is because the vast majority of transactions are already without dollars.
“I think at some point in history the cancellation of Dena would be a bigger job, but now people don’t even carry them in their pockets,” said economist Sean Snith. “They are not largely in circulation.”
Did other countries try to abolish the penny?
Yes, countries like Canada, New Zealand, Australia and the Netherlands have abolished their coins with the smallest denomination.
When Canada in 2013 stopped forging Pena, he saved the estimated $ 11 million a year, according to the Canadian government. Many traders began to round out the purchase of cash to the closest duration of five percent, while the government was collecting and recycling the little things for their copper and zinc content.
US legislators have long advocated similar measures. Starting since 1989, the late Congressman in Arizona Jim Kolba began for decades for a long offer to remove the trifle, introducing several unsuccessful accounts to abolish it. “Penny has been a nuisance for years,” he said back in 2006.
Is it legal for Trump to stop Penny’s production independently?
That’s unclear.
The Congress, which oversees the American mint operations, will probably need to bring the law to withdraw permanently into a coin. But some legal experts say Trump could simply direct the treasury minister to stop producing them.
Legal scientist Laurence H Triba pointed out that the secretary has the authority to minimize coins in any amount they are considered to be necessary – potentially zero for the trifle.
“Unlike a a lot of new administration [of President Trump] In accordance with the flood of executive orders of January 20, this action seems to me completely legitimate and completely constitutional, “Tribe said.
Robert Trest, economist professor at Northeastern University, says “the process of abolishing Dena in the US is a little unclear.”
“It will probably require the rank of Congress, but the treasury secretary might simply stop forging new coins,” in the January article, threesome has been quoted by Northeastern Global News. By abolishing the penny, he added, he would ask questions about how to round up monetary transactions and use of existing coins collections.
