Impromptu
More pennies, more problems
Feb 14, 2025
In this discussion, Megan McArdle, a columnist at The Washington Post specializing in economics, joins Drew Goins and Molly Roberts to dissect the fate of the penny. They explore why we produce a coin that costs more to make than it’s worth, the nostalgia attached to low-denomination coins, and the political hurdles to phasing them out. The trio also address the implications of moving towards a cashless society, particularly its impact on marginalized communities, and dive into the contrasting reliability of currencies versus cryptocurrencies.
19:53
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Quick takeaways
- The cost of producing pennies far outweighs their value, prompting discussions about their eventual retirement from circulation.
- As digital transactions rise, the podcast explores the implications of cashlessness for privacy and financial accessibility in society.
Deep dives
The Case Against the Penny
The discussion highlights the costs associated with producing pennies, which exceed their face value, leading to a strong argument for retiring this denomination. It is noted that the penny, once a valued currency in past generations, has dwindled in utility due to inflation, rendering it almost obsolete. The podcast emphasizes that most pennies minted quickly fall out of circulation, with an estimated 250 billion pennies hoarded rather than used in transactions. This negative utility means that the time spent dealing with pennies at cash registers is often worth more than the coins themselves.
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