Each penny costs about 2 cents to produce, according to a 2019 report by the United States Mint. Pennies accounted for 59 percent of the 12 billion coins the mint manufactured last year. It was one of the first coins made by the Mint after it was established in 1792. Penny proponents also argue that eliminating pennies would amount to a one-cent sales tax for consumers because prices that end in 99 cents are common. The argument for getting rid of the penny, said N. Gregory Mankiw, an economics professor at Harvard University, has only gotten stronger over the decades, as inflation has suppressed the penny’s purchasing power.

Source: New York Times July 29, 2020 14:03 UTC