You probably have a jar of them sitting on your dresser. Or maybe they’re wedged into the gap between your car seat and the center console, gathering dust and sticky soda residue. We're talking about the penny. That copper-colored disc (which is actually mostly zinc these days) has become the most debated piece of metal in American history. People have been asking when will they stop making pennies for decades, yet every morning, the minting presses in Philadelphia and Denver keep on striking them. It feels like a glitch in the matrix.
Why? Because the math is, quite frankly, embarrassing.
The United States Mint released its 2023 Annual Report, and the numbers are staggering. It now costs about 3.07 cents to manufacture a single one-cent coin. Think about that. The government is literally losing money on every single penny it produces. It’s like running a lemonade stand where you spend three dollars to make a cup you sell for a buck. It makes zero sense on paper, yet here we are.
The Political Tug-of-War Over the One-Cent Coin
Every few years, a brave politician tries to kill the penny. They usually cite the "Penny Plan" or some variation of a cost-saving measure. In 2010, the Coin Modernization and Taxpayer Savings Act tried to tackle this. It didn't work. Then, President Obama’s 2015 budget proposal basically said the penny was a waste of space. Still, nothing changed.
The reason when will they stop making pennies remains a mystery isn't purely about economics; it's about lobbying and nostalgia.
There is a massive group called "Americans for Common Cents." They are largely funded by Jarden Zinc Products, the company that sells the zinc blanks to the Mint. Naturally, they have a massive financial interest in keeping the penny alive. They argue that if we get rid of the penny, prices will be rounded up, hurting the poorest Americans. This is often called the "Rounding Tax."
But let's be real. Canada got rid of their penny in 2013. Australia did it in 1992. New Zealand did it even earlier. None of those economies collapsed. In Canada, they just round to the nearest five cents for cash transactions. Digital transactions? They stay exactly the same down to the cent. It’s a solved problem.
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The Lincoln Factor and Emotional Attachments
Abraham Lincoln is a beloved figure. Taking him off the lowest denomination of currency feels, to some, like a slight against one of our greatest presidents. This sentimental attachment is surprisingly powerful in Washington. When you combine the lobbying power of the zinc industry with the fear of "inflation optics," most Congress members decide it’s just not the hill they want to die on.
Is it worth the political capital to save $90 million a year when the federal deficit is in the trillions? Most politicians say no.
The Economic Reality of the Zinc Penny
We need to talk about what's actually inside your pocket. Before 1982, pennies were 95% copper. If you find one of those today, it’s actually worth about three cents just for the metal content. But after 1982, the Mint switched to a 97.5% zinc core with a thin copper plating.
Zinc is cheaper, sure, but it's still not cheap enough.
The price of raw materials fluctuates constantly. When the price of zinc spikes on the global market, the loss per penny grows. In some years, the Mint has lost over $100 million just making pennies and nickels (which also cost more than five cents to make). This is known as "negative seigniorage."
Seigniorage is the profit a government makes by issuing currency. For a $100 bill, the seigniorage is massive because it costs almost nothing to print. For the penny, it’s a drain on the Treasury.
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What Would a "Penny-Less" America Look Like?
Imagine you’re at a gas station. Your total is $4.02. If you’re paying cash, the cashier just asks for $4.00. If it’s $4.03, you pay $4.05. It’s seamless. Honestly, most of us already live in a "penniless" world. We use Apple Pay, credit cards, and Venmo. These digital tools don't care about physical coins.
The military has already figured this out. On U.S. overseas military bases, AAFES (the exchange service) stopped using pennies years ago. They round to the nearest nickel because shipping heavy crates of pennies across the ocean was a logistical nightmare. It worked perfectly. No riots. No economic ruin.
Why 2026 Could Be a Turning Point
There is a tiny glimmer of hope for penny-haters on the horizon. The Mint is constantly looking at "alternative metals." There have been studies into using steel or different alloys to bring the cost down. However, steel coins mess up vending machines and coin-sorting hardware.
Wait. When was the last time you saw a vending machine that took pennies? Exactly.
The real pressure to answer when will they stop making pennies will likely come from the death of cash itself. As more retailers move to card-only or "cashless" models, the demand for small change is plummeting. During the pandemic, we had a "coin shortage," but it wasn't that we didn't have enough coins—it was that they weren't circulating. People were keeping them in jars.
If the circulation velocity of the penny stays low, the Mint might eventually just stop production because nobody is asking for them anymore.
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Surprising Facts About Penny Production
- The Mint produces billions of pennies every year—roughly half of all coins minted.
- The average penny circulates for about 25 years before it becomes too worn or lost.
- Vending machines, toll booths, and laundromats almost never accept them.
- Charities often rely on "penny drives," which is one of the few remaining "pro-penny" arguments with any weight.
Honestly, the penny is a 19th-century solution to a 21st-century situation. We keep it around like an old VCR. It’s familiar, it’s comforting, but it’s mostly just taking up space.
Actionable Steps for Your "Pocket Change"
If you’re tired of the penny clutter, you don't have to wait for Congress to act. You can effectively "retire" the penny from your own life right now.
First, stop hoarding them. Those jars of pennies are literally removing money from the economy. Take them to a Coinstar, but be careful of the fees. Usually, if you take the payout as a gift card (like Amazon or Starbucks), they don't charge you the 11-12% fee.
Second, donate them. Many schools and nonprofits still run "Penny Wars." It’s the one place where that 3.07-cent production cost actually turns into a cent of value for a good cause.
Third, check your dates. If you have pennies from before 1982, they are 95% copper. While it’s technically illegal to melt them down for the metal, they are a better store of value than the new zinc ones. Collectors often buy "bulk copper cents" for a premium over face value.
Finally, embrace digital. The easiest way to stop worrying about the penny is to stop using cash for small transactions. Most banking apps now have "round-up" features where your spare change from a digital purchase is automatically put into a savings account or invested. It’s the modern version of the penny jar, but it actually earns interest.
The government might not have a set date for the end of the penny, but the market is already moving on. Whether it's through a formal act of Congress or just a slow fade into irrelevance, the era of the one-cent coin is definitely in its twilight. You might as well get ahead of the curve.