In the middle of Super Bowl LIX, President Donald Trump posted on social media that he was getting rid of the penny. Since the lowly penny in 2024 cost about 3.7 cents to make – meaning the government loses money on every coin – the announcement might seem practical at first glance. But does the president have the power to kill off the penny?
I’m a business school professor and a longtime advocate for physical money who has written op-eds supporting the penny in The Wall Street Journal and CNN. My forthcoming book, “The Power of Cash,” explores the many advantages of using old-fashioned currency. Yet inflation has slashed the value of the penny by a third in just the past decade, and even I now admit that its time is up.
But eliminating the penny via a social media post isn’t just legally dubious. It could cause more problems than it solves.
