The Case for Eliminating the Penny
Research showing why ending penny production saves money, protects the environment, and follows successful international precedents.
Research
Executive Summary
Data-driven analysis of penny production costs and economic impact from official sources.
Direct losses from penny production in 2024
Nearly 4× its face value to manufacture
Pennies minted in 2024 (57% of all coins)
According to the U.S. Mint's 2024 Annual Report, the federal government loses money producing pennies — nearly four times their face value. This has continued for 19 consecutive years.
Meanwhile, over a dozen countries have successfully eliminated their lowest-denomination coins with minimal economic disruption and no measurable inflation impact.
Economic Impact
Production costs and impact on businesses nationwide.
Retailer Shortage Crisis
Transportation
Secure transport from mints to banks nationwide
Labor Time
Employee time counting low-value coins at shift changes
Banking Overhead
Sorting and wrapping fees (10¢ per roll markup)
Storage
Vault space for billions of low-value coins
Deep Dive Research
Explore detailed analysis on specific topics
Common Misconceptions
Separating fact from fiction about penny elimination
Eliminating the penny will cause inflation
12+ countries eliminated low-denomination coins with no measurable inflation. Market competition prevents price increases.
We need pennies for exact change
Electronic payments are unaffected. Cash rounding only applies to physical currency and balances out over time.
Charities depend on penny donations
Canadian charities reported no impact. Digital donations have grown. Major charities support elimination.
The penny has historical value
The U.S. eliminated the half-cent in 1857. Pennies remain legal tender and collectible.
Rounding will hurt low-income consumers
Rounding averages to zero. Studies show no impact on any income group.
Businesses can absorb the cost
Retailers are currently losing millions. Cash handling costs over 5% of intake. Federal guidance needed.
The Path Forward
The evidence is overwhelming: eliminating penny production will save taxpayers millions, reduce environmental damage, and align the U.S. with successful international examples.
- No measurable inflation impact
- Transparent rounding systems
- Digital payments preserve exact amounts
- Immediate environmental benefits
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