Judul : The 232-Year-Old US Penny Has Finally Died
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The 232-Year-Old US Penny Has Finally Died
The U.S. one-cent coin died on Wednesday in Philadelphia at the age of 232.
As per the Treasury Department, the reasons were lack of relevance and excessive expenses.
A penny could no longer purchase anything—not even small treats. Furthermore, since the cost to produce each coin surpassed three cents, the penny's future was determined by basic economic principles.
The last pennies were produced on Wednesday afternoon in the Pennsylvania city, where U.S. Treasurer Brandon Beach minted the final, everyday one-cent coin.
"Today, the Mint marks 232 years of producing pennies," said Kristie McNally, acting mint director.
Although general manufacturing ends today, the penny's impact remains. As its role in everyday transactions changes, its importance in America's history will persist.
The one-cent coin has been a significant part of everyday American life for a long time — from the beginning of the US economy until today.
Nevertheless, because of present-day consumer habits and financial conditions, keeping the penny in production is not viable.
In the last ten years, the expense of manufacturing each penny has increased from 1.42 cents to 3.69 cents per penny.
An estimated 300 billion pennies are still in use — significantly more than what is required for everyday transactions.
Merchants and various companies may still set prices for products and services in one-cent increments.
The choice to stop manufacturing the one-cent coin came in May, when the U.S. government declared its intention to eliminate the coin permanently.
The penny was costing more than four times its original value to achieveand the Treasury incurred a loss of $85 million in producing the coins just last year.
Removing the penny could save the Treasury some immediate funds, but it brings up the next issue with currency, which is the nickel.
"If you eliminate the penny, it will lead to a higher number of nickels," said Rhett Jeppson, a former chief executive of the US Mint.
"You gain more from a nickel than you do from a penny," Jeppson said to the New York Times.
Nickels, which are valued at five cents, also result in a financial loss for the government, creating an $18 million deficit due to their manufacturing last year.
The issue might worsen with the elimination of the penny, as the need for nickels is expected to rise significantly.
The American one-cent coin was first issued in 1973, starting as a big copper piece and later becoming smaller in size to its current, more compact design.
The initial designs included a 'flowing hair' Liberty, which was soon modified, and the coin has undergone changes in both material and look, with Abraham Lincoln appearing on it since 1909.
Read more- Trump ends the production of pennies: How will this bold decision save millions as costs at the US Mint rise?
- Is the end of the penny a significant act or a potential financial crisis for the United States?
- Is Trump's bold decision to stop making pennies a smart financial move or a possible economic mistake?
- What caused the absence of a penny to result in a $1.2 million daily loss for merchants, as busy convenience stores scramble for answers?
- Will the UK continue to use copper coins while Trump eliminates 'inefficient' US pennies?
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