Today, Explained Pennies don’t make cents
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Oct 11, 2024 Caity Weaver, a staff writer for the New York Times Magazine, dives deep into the curious existence of the penny. She reveals how producing a penny costs more than its face value and why Americans still cling to them despite their dwindling use. The conversation touches on Canada’s successful phase-out of the penny, public reactions to currency reform, and the ongoing debate about its cultural significance in the U.S. - making you question the real value of this small coin.
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Penny Production Cost
- The U.S. Mint spends over three cents to produce and distribute each penny.
- This creates a financial loss with every penny made.
The Penny Paradox
- Pennies are made but not circulated, creating a paradox.
- The Mint produces more to compensate, but there isn't enough storage if everyone spent them.
Coinstar's Impact on Coin Circulation
- During COVID-19 lockdowns, Coinstar deposits decreased by 60%.
- This drop led to perceived coin shortages, although enough coins existed, highlighting Coinstar's role in circulation.