For over two decades, economics professor Robert Whaples has been a leading advocate for eliminating the penny. His research and insights on the topic have been featured in major national publications, including The New York Times Magazine, The Wall Street Journal, The Washington Post, CNN, and Reuters.
Whaples argues that continuing to produce pennies is both inefficient and costly for taxpayers. In 2024, it cost 3.7 cents to mint and distribute a single one-cent coin—meaning the government spends nearly four times the coin’s actual value to produce it. With 240 billion pennies in circulation, the U.S. Mint continues to create billions more each year, adding to unnecessary government expenses.
“It’s time to eliminate the penny,” says Whaples. “It saves taxpayers money, and year over year, those savings add up.”
Why Stop Minting the Penny Now?
1. It Costs More Than It’s Worth
- In 2024, it cost 3.7 cents to make a one-cent coin.
- Taxpayers are essentially subsidizing the production of a coin with almost no purchasing power.
2. It Wastes Valuable Time
- The average American earns about one cent every two seconds.
- If it takes longer than two seconds to use a penny, it’s costing more in lost time than the penny’s actual value.
3. Most Pennies Never Get Reused
- Americans don’t recirculate pennies—instead, they sit in jars, get lost in couch cushions, or end up in landfills.
- Businesses still request rolls of pennies from banks, but they rarely return into active circulation.
4. The Environmental Impact
- Mining the materials to create pennies has an environmental cost.
- Producing billions of new pennies every year adds to waste and pollution.
Debunking Penny Myths
Will Eliminating the Penny Increase Prices?
One argument against eliminating the penny is that retailers will round prices up, leading to higher costs for consumers.
However, Whaples’ research—using real cash register data from East Coast convenience stores—found that:
- Prices ending in nine are no more common than any other digit.
- Rounding up and rounding down balances out, making the effect on consumers negligible.
Is Nostalgia Holding Us Back?
Many people feel sentimental about pennies, associating them with childhood memories, gumball machines, and Lincoln’s legacy.
However, pennies would still remain in circulation for years even if the U.S. stopped minting them. Lincoln is also on the $5 bill, so his presence in American currency would remain.
What Comes After the Penny? Is the Nickel Next?
- The U.S. eliminated the half-cent coin in 1857, when it became too small in value to be useful.
- Over time, inflation reduces the practical use of smaller coins.
- Eventually, the nickel may also become obsolete—but quarters will remain useful for a long time.
“How long will it take between the penny and the nickel?” says Whaples. “I don’t know, but it could take quite a while.”
