Background on the Penny’s Significance and History
The United States has just minted its final penny, marking the end of 232 years of continuous production. This decision aims to cut costs as the penny’s relevance has diminished over time.
The last penny was minted in Philadelphia by the Treasurer of the United States, Brandon Beach, officially concluding the 232-year run of penny production.
The Penny’s Future and Current Circulation
“Although the overall production has concluded today, the legacy of the penny persists,” stated Kristie McNally, Acting Director of the United States Mint in a press release.
The penny will continue to be legal tender. Currently, approximately 300 billion pennies are in circulation across the country.
Impetus for Change: President Trump’s Request
The cessation of production follows a request by President Donald Trump in February for the Department of the Treasury to cease penny production, aiming to reduce government expenditure.
“For too long, the United States has been minting pennies that literally cost more than two cents to produce. It’s a complete waste!” Trump wrote on his Truth Social platform at the time.
Penny’s Evolution and Composition
The penny was first authorized in 1792 through the Coinage Act. Initially, pennies were made of pure copper, but modern pennies are smaller and composed of zinc with a copper coating, giving them their reddish hue.
In the past decade, the cost of manufacturing each penny has risen from 1.42 cents to 3.69 cents, as reported by the United States Mint on Wednesday.
Key Questions and Answers
- What prompted the United States to stop minting pennies? President Donald Trump requested the Department of the Treasury to cease penny production in February 2023 due to escalating costs.
- How much does it cost to produce a penny now? The production cost for each penny has increased from 1.42 cents to 3.69 cents over the past decade.
- What are pennies made of currently? Modern pennies are smaller and composed of zinc with a copper coating, which gives them their reddish color.
- Will pennies remain legal tender? Yes, the penny will continue to be considered legal tender in the United States.
- How many pennies are currently in circulation? Approximately 300 billion pennies are currently in circulation across the United States.
