A Quest for Common Cents: The Future of the Penny in United States Currency

Abstract

Since its creation in 1793, the United States penny has enjoyed nearly uninterrupted production. The cent’s long-term durability can be matched only by its adaptability, evidenced by its numerous designs before the advent of its modern iterations. This paper follows the penny throughout American history, from its origins through its evolution into the nation’s most unprofitable and insignificant piece of currency. As a combination of perpetual inflation and rising costs of compositional metals renders continued production of the single-cent coin costly and unsustainable, the United States government must take immediate action to evaluate the coin’s status within circulating currency. The only forward-thinking and cost-saving solution to the inefficiencies of penny production entails elimination of the one-cent coin. This paper outlines the processes crucial to the eventual retirement of the single-cent coin from American currency, including necessary interventional measures that minimize negative economic impacts, potential difficulties affecting the passage of currency reform packages in Congress, and instances of unsuccessful past attempts at eliminating the penny. Finally, the essay evaluates the likelihood of eliminating production of the penny through legislative action in the present day, as the coin’s dissolution becomes more imperative.