Impromptu More pennies, more problems
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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.
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The Penny Experiment
- Drew Goins conducted an experiment leaving a penny on a table.
- It disappeared, raising questions about its perceived value.
The Penny's Negative Value
- Producing pennies costs more than their face value, a financial loss.
- This raises the question of their continued production.
Penny Candy Nostalgia
- Megan McArdle recalls a time when pennies had actual purchasing power, like for penny candy.
- Inflation has eroded this value, making the penny practically obsolete.