TYLER, Texas — April 1 marks National One Cent Day which recognizes one of the least used and most produced forms of American currency.
The U.S. one-cent coin officially became the Lincoln penny in 1909, the 100th anniversary of Lincoln’s birth. This was also the first time a historical figure was featured on a U.S. coin.
Currently, the U.S. mint produces 13 billion pennies per year, which makes up for 2/3 of their coins produced. In 2017, the cost of penny production was $69 million.
So why does the government produce so many pennies if you cannot even use them in vending machines, toll booths, or even a gumball machine?
The reason is because most pennies get lost or end up in a collection jar. As a result, the U.S. mint must supplement those pennies by making more.
Many are arguing to finally get rid of the penny for good.
Canada officially retired their version of the penny, in 2013. Instead, Canadians round cash transactions up or down to the closest multiple of five.
Some people argue rounding cash transactions could place a burden on consumers, or trigger inflation.
However, a study published by economist Robert Whaples in 2007 concluded that eliminating the penny could actually save Americans about $730 million a year.
In the six years since Canada ditched their penny, their inflation rates have stayed fairly steady.
At the end of the day, the U.S. mint actually makes money off of quarters and nickels and reported a total profit of $391.5 million dollars in 2017.
They can afford the cost of penny production, about 1.8 cents per coin, and with no currency changes currently planned, it looks like the penny is here to stay. For now.
