February 13, 2025
The Joplin Globe recently published an op-ed piece written by Jay Zagorsky, Clinical Associate Professor of Markets, Public Policy, and Law, discussing whether the penny should be eliminated by President Trump.
The U.S. Mint loses money producing pennies, but President Trump’s proposal to eliminate them is legally questionable, as only Congress has the power to change coinage laws. Despite decreased production, the penny remains legal tender. Past efforts to phase it out, including in 1989 and 2017, were unsuccessful. Even if production ceased, the demand for pennies would persist.
“A big problem remains. Even if the U.S. stopped making pennies, they’d remain legal tender and people would still need them as change. In simple terms, the supply would change, but not the demand,” Zagorsky adds.
Experts suggest Congress should pass legislation for a proper solution, including rounding purchases to avoid confusion.
