The last-ever penny will be minted today in Philadelphia
10 days ago
- #currency
- #economics
- #retail
- The American penny will be discontinued after 238 years, with the last one minted on Wednesday at the US Mint in Philadelphia.
- Production costs for the penny exceed its value, making it economically unviable.
- The penny's discontinuation is causing logistical and legal challenges for retailers, including rounding issues and potential legal troubles in certain states.
- Some businesses, like Kwik Trip, are rounding down cash purchases to avoid overcharging customers, despite the financial impact.
- Rounding to the nearest nickel could cost consumers approximately $6 million annually, though the impact per household is minimal.
- Certain states and cities require exact change, complicating the transition away from the penny.
- The federal food assistance program (SNAP) adds another layer of complexity, as merchants must ensure fair pricing for all customers.
- Retail groups are urging Congress to pass legislation to address the challenges posed by the penny's discontinuation.
- The penny, first minted in 1787, has seen a decline in use and popularity, with minimal public outcry over its demise.
- Despite its sentimental value for some, the penny's discontinuation is seen as a necessary step due to its underutilization.