Will the Penny Survive Coronavirus? Some Hope Not

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.

But the movement to eliminate pennies faces significant opposition.

Some people support the penny for sentimental reasons. It was one of the first coins made by the Mint after it was established in 1792.

Another reason, offered by Americans for Common Cents, an advocacy group that provides research for Congress on the value of the penny, is particularly pertinent during a pandemic: Older pennies are made mostly of copper, which is antimicrobial.

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.

Robert Whaples, an economics professor at Wake Forest University, said his research, which examined data from a chain of convenience stores, showed that customers ended up breaking even over time because prices were rounded down as much as up, considering people buy multiple items and when accounting for tax.

“Right now, with the coin shortage, is a good opportunity to seize the issue,” he said, arguing that pennies should be eliminated from circulation.

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. Still, he said he did not think any changes would happen soon.