After 232 years, the United States farewell to the penny.
The US Treasury announced in May that it would begin to remove the production of its lowest value piece.
According to the Trump administration, the reason for the decision was to save federal money, “a penny at a time”. In 2024, the American currency reported that the production of each cent cost 3.7 cents to the government, almost four times its nominal value. Overall, to do
3.2 billion under last year, the federal government lost
$ 85.3 million. He estimates that he can save $ 56 million a year only in production costs.
Le Penny will remain in legal class and will continue to be widely accepted across the country as long as people continue to use money. Last year, Yougov indicated that species remain “the most commonly used form of payment”, with 67% of Americans by promoting it. But the statistics of Capital One Consumers project that around half of the American population will not use any species in 2025.
The room has a penny is made of copper -plated zinc but was originally in copper. It has been in circulation since the creation of the American currency in 1792. Lately, and despite the 114 billion currently in circulation, the Treasury says that the Sous are “seriously underused” and easily lost, thrown or abandoned in pots in people’s houses.
Managers expect companies to start bringing together the nearest nickel – five hundred – and to gradually eliminate hundred in cash transactions. But the transition may not be as simple as that.
“People using species in stores are still entitled to their change,” notes Jay Zagorsky, lecturer in markets, public policy and right to the School of Business of the University of Boston. “The problem with the decision to stop making the reduction of the penny is that it has no impact on the supply of money, not demand. This question must be resolved with an official national policy. The US Congress must adopt a law in this regard. ” The United States is not the first country to abolish its smallest names. The EU and Canada have completed their money for more than a decade, while New Zealand and Australia stopped production over 30 years ago, in 1990 and 1992, respectively.