U.S. Mint to Cease Penny Production Amid Rising Costs
The U.S. Mint will stop producing pennies, with final orders placed, saving $56 million annually as costs exceed their value.
Overview
The U.S. Treasury has confirmed it will cease penny production, following President Trump's directive. The final order of penny blanks has been made, and production will end when they run out. This decision comes as the cost of minting pennies has risen to nearly 4 cents each, leading to an expected annual savings of $56 million. With 114 billion pennies in circulation, the move reflects changing payment habits and ongoing debates about the coin's utility. While some advocate for its elimination, others argue it plays a role in charity and pricing. Congress may need to legislate the change, as past efforts to eliminate the penny have failed.
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Analysis
- The article presents a balanced view on the U.S. Mint's decision to stop producing pennies.
- It highlights financial savings while addressing concerns about increased demand for nickels.
- The tone is neutral to slightly positive, reflecting mixed opinions on the decision.
Articles (12)
Center (7)
"…The U.S. Mint has made its final order of penny blanks and plans to stop producing the coin when those run out."
ABC News·2M·"…Ending production of the penny will save the Mint about $56 million in annual savings, the Treasury said on Thursday."
CBS News·2M·"…The phasing out of the coins will mean businesses will need to round prices up or down, according to the Wall Street Journal."
BBC News·2M·"…The move is expected to result in immediate savings of $56 million a year."
NPR·2M·"…The Treasury Dept. says halting new penny production could lead to an 'immediate annual savings of $56 million in reduced material costs.'"
NBC News·2M·"…By stopping the penny’s production, the Treasury expects an immediate annual savings of $56 million in reduced material costs."
Associated Press·2M·"…The federal government made its final order of penny blanks this month − the first step to end the production of the 1-cent coin, a spokesperson for the Treasury Department confirmed to USA TODAY."
USA TODAY·2M·FAQ
The cost of minting pennies has risen to nearly 4 cents each, which exceeds their face value of 1 cent. This is due to various factors, including the cost of raw materials and production processes. The exact breakdown of costs includes metal composition, labor, and machinery expenses[4].
History
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5 articles