President Trump recently announced an end to penny minting, citing the cost-efficiency argument as each penny costs more to produce than its face value. This decision has received bipartisan agreement, with Washington Post columnists discussing the penny's irrelevance in an increasingly digital economy. They noted the nostalgia associated with pennies, particularly regarding penny candy, contrasting this with the practical recognizing that pennies are rarely picked up in daily life. The discussion also emphasized the economic principle of seigniorage and the evolving sentiment about cash transactions.
McArdle commented that if she sees a penny on the street, I don't bother to lean down and pick it up. It's not worth my time.
Roberts stated that stopping the production of pennies could actually make some sense, said Roberts. No pun intended, I promise. It does cost more to mint one than it's worth.
Goins offered a vocabulary lesson with the word seigniorage, which means the profit the government makes when it issues currency, calculated in this case as the difference between the face value of a penny and the costs to produce one.
Goins agreed that he walks right past pennies and tries to step on them, highlighting the declining value and utility of the coin.
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