Michigan’s Economy And The Penny Debate: What You Need To Know

It is the issue that has Democrats and Republicans agreeing together.

After "decades" of trying to get rid of the penny, it may become a reality, according to NPR.

Earlier this month, President Donald Trump told the United States Treasury to stop minting new pennies.

How would this affect Michigan?

What Does This Mean For Michiganders

If the United States Treasury does stop minting pennies, it will most likely increase the need for more nickels.

The United States Mint reported that it costs almost four cents to produce one new penny. On the flip side, it costs roughly 14 cents to mint (create) a nickel, according to AP.

"Advocates for ditching the penny cite its high production cost — currently almost 4 cents per penny, according to the U.S. Mint — and limited utility. Fans of the penny cite its usefulness in charity drives and relative bargain in production costs compared with the nickel, which costs almost 14 cents to mint."

That means production costs for a single penny are actually a bargain to make a penny rather than a nickel.

The National Associate of Convenience Stores states that getting rid of the penny means that you will most likely pay slightly more for products.

Without the penny, all cash transactions would have to be rounded up to the nearest nickel. So, the next time you go to get a coffee at your local coffee shop, a cup of coffee that costs $1.96 may now cost $2.00.