Nour Ismail, a cashier at All-Star Deli in Manhattan, says pennies in the tip jar are more of a nuisance than a reward. “Pennies don’t matter,” he shrugs.
His view aligns with former President Donald Trump, who announced on Truth Social that he directed the U.S. Treasury to stop producing pennies. However, the Mint operates under Congress, leaving the decision uncertain.
Supporters of the move argue that pennies are wasteful. It cost 3.69 cents to make one in 2024, and many end up in jars or drawers. Coin dealer Larry Jackson says even a 30-pound bag barely fetches $50.
However, critics, including Americans for Common Cents, warn that eliminating the penny could hurt low-income consumers and drive prices up, as businesses might round costs higher. But a 2007 study found no evidence of a “rounding tax.”
Economist Sean Snaith calls the penny obsolete, noting that even nickels, which cost over 13 cents to produce, are a bigger financial loss. Canada eliminated its penny in 2012, saving millions annually, with cash transactions rounded to the nearest five cents.
Many Americans, like Richie Figueroa of Staten Island, wouldn’t miss it. “I don’t even wait for penny change,” he says. “What purpose do they serve?”
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