By michael vivar
The United States Mint was first established in 1792. Philadelphia was the initial location, but four other sites were subsequently constructed throughout the country.
One of the original US coins minted was the penny. It was part of a pioneering system of decimal increments breaking from esoteric British traditions that included farthings and pounds.
Throughout its history, the penny has had many iterations in metal content and representations. The modern coin, with Lincoln, appeared in 1909 to commemorate his 100th birthday.
President Donald Trump posted on social media during Super Bowl LIX that he intends to abolish the penny via executive order.
There are reasonable arguments for the policy. Many Americans don't perceive that pennies are important in their everyday transactions and the coins are often discarded.
It does cost $4.00 USD to mint each penny, which seems economically inefficient. However, most US coinage have a negative cost/benefit ratio to produce.
Another argument against is national policy proximity. Canada phased out their penny beginning in 2012.
The problem with Trump's decree is that changes to currency issuance constitutionally needs to be passed by Congress. This is just one microcosm of his executive overreach.
Another oversight of his off-the-cuff remark is it doesn't consider the expense of repurposing or dismantling minting machines. A penny purge might be good but shouldn't be instant.
Americans should also be aware that Facebook and X are attempting to introduce their own currencies which would allow algorithmic pricing in their marketplaces.
Eliminating just a one cent difference in cost can forever skew the economic perspectives and experiences of consumers.