US to Stop Penny Production: What Happens Next?

The United States is ending the production of pennies. The decision was made due to the high cost of producing pennies, which is about four times higher than their actual value. The Treasury Department will stop minting new pennies early next year. Businesses will be required to round up or down to the nearest five cents. This measure is expected to save the U.S. Mint $56 million annually. "This move follows in the footsteps of Canada, which stopped producing the coin in 2012, and countries like Australia and New Zealand, which stopped producing it decades ago." said Jacob Ohara, WSJ producer. The phasing out of the penny is a significant event, affecting both consumers and businesses. While some may lament the loss of a piece of history, the economic benefits are undeniable. This decision underscores the ongoing evolution of currency and the importance of cost-effectiveness in government spending.