Donald Trump has made official a change that will mark the history of money in the United States: the elimination of the penny. This small coin, present for more than 200 years, will no longer be produced.
Although many see it as a minor detail, the impact will be real. From the way we pay in cash to how companies adjust their payment systems, no one will remain completely indifferent.
Why eliminate pennies?
The main reason is economic. Manufacturing a penny costs approximately $3.69, according to data from the Department of the Treasury. Each coin represents a loss for the government, and keeping it in circulation makes no financial sense.
Representative Lisa McClain, one of the promoters of the Common Cents Act, stated that taxpayers shouldn't fund a coin that generates losses. "It's time to modernize our monetary policy," she declared. The idea is simple: reduce unnecessary costs and make transactions easier.
How will it affect your purchases and businesses
With the elimination of the penny, all cash payments will be rounded to the nearest multiple of five cents. For example, if a product costs $2.02, you'll pay $2.00; if it costs $2.03, you'll pay $2.05.
Some fear that this change will cause confusion, especially among older people or those who rely exclusively on cash. In addition, companies will have to update their payment systems, which will mean an initial expense. However, those who support the measure say that the benefits will outweigh the inconveniences in the long term.
Cultural and labor impact
Eliminating the penny is not just an economic decision; it's also a cultural change. These coins have been part of Americans' daily lives for centuries. Their disappearance symbolizes a step toward modernization, but also a nostalgic loss.
In Tennessee, where the only factory that produces penny blanks is located, there is concern about the jobs that could be lost. Greene County Mayor Kevin Morrison pointed out that the community relies heavily on the metalworking industry linked to the coin. Even some members of Congress expressed doubts before supporting the law, although they finally approved the bill after receiving guarantees about the transition.
When will it happen?
Although there is still no exact date, production of pennies is expected to end around 2026, when current inventories run out. Therefore, citizens will still have time to get used to this historic change.