Happy Wednesday and happy September, Politicados! Today I thought I’d share an interesting article I read in the New York Times Magazine, all about the penny. I am generally against pennies as a unit of currency, but never really dove into the logistics enough to know how good of an idea that was.
And let me tell you, when you dive into, it’s kinda wild.
I was disappointed to learn, recently, that the United States has created for itself a logistical problem so stupendously stupid, one cannot help wondering if it is wise to continue to allow this nation to supervise the design of its own holiday postage stamps, let alone preside over the administration of an extensive Interstate highway system or nuclear arsenal. It’s the dumbest thing I ever heard. I have come to think of it as the Perpetual Penny Paradox.
Most pennies produced by the U.S. Mint are given out as change but never spent; this creates an incessant demand for new pennies to replace them, so that cash transactions that necessitate pennies (i.e., any concluding with a sum whose final digit is 1, 2, 3, 4, 6, 7, 8 or 9) can be settled. Because these replacement pennies will themselves not be spent, they will need to be replaced with new pennies that will also not be spent, and so will have to be replaced with new pennies that will not be spent, which will have to be replaced by new pennies (that will not be spent, and so will have to be replaced). In other words, we keep minting pennies because no one uses the pennies we mint.
A conservative estimate holds that there are 240 billion pennies lying around the United States — about 724 ($7.24) for every man, woman and child there residing, and enough to hand two pennies to every bewildered human born since the dawn of man. (To distribute them all, in fact, we’d have to double back to the beginning and give our first six billion ancestors a third American penny.) These are but a fraction of the several hundreds of billions of pennies issued since 1793, most of which have suffered a mysterious fate sometimes described in government records, with a hint of supernaturality generally undesirable in bookkeeping, as “disappearance.” As far as anyone knows, the American cent is the most produced coin in the history of civilization, its portrait of Lincoln the most reproduced piece of art on Earth. Although pennies are almost never used for their ostensible purpose (to make purchases), right now one out of every two circulating coins minted in the United States has a face value of 1 cent. A majority of the ones that have not yet disappeared are, according to a 2022 report, “sitting in consumers’ coin jars in their homes.”
It’s crucial that they remain there. Five years ago, Mint officials conceded that if even a modest portion of these dormant pennies were suddenly to return to circulation, the resulting flow-back would be “logistically unmanageable.” There would be so unbelievably many pennies that there most likely would not be enough room to contain them inside government vaults. Moving them from place to place would be time-consuming, cumbersome and costly. (Just $100 worth of pennies weighs a touch over 55 pounds.) With each new penny minted, this problem becomes slightly more of a problem.
Chew on that this morning. And be kind and thoughtful today. Cheers.