The Penny Obit: Why the US Mint Stopped Producing Pennies

Short Summary

The penny has long been a fixture of American everyday life, yet rising production costs and changing cash use pushed the nation to a turning point. This episode chronicles Abraham Lincoln’s appearance on the penny beginning in 1909, explains how the coin’s metal costs climbed, and explains why the last penny was minted. Through conversations with former US Mint director Ed Moy, artist Robert Wexler, and Lincoln Museum staff, the story reveals how a small denomination became a lens on currency economics, government budgeting, and cultural memory.

Overview

This episode surveys the penny’s journey from a familiar cash staple to a financial and symbolic hinge point for American currency. It opens with the Lincoln penny’s 1909 redesign and notes how pennies have circulated in everyday life—from couch cushions to fountains to a penny on Mars—before tracing the economic logic behind ending its production. The program frames pennies as a microcosm of the broader costs and tradeoffs involved in coinage, seigniorage, and government budgeting, while also highlighting the cultural resonance of Lincoln’s image on U.S. currency.

"Pennies are everywhere." - Waylon Wong

As production costs rose, the U.S. Mint faced a chronic imbalance: the cost of making a penny exceeded its face value. The episode explains that pennies are composed of 97.5 percent zinc with a copper coating, a material mix that became economically unfavorable as metal prices fluctuated during and after the financial crisis. The Mint’s fiscal math showed that the government was losing money with every cent minted, a situation described by former director Ed Moy as a relatively small loss in the context of a multi-trillion-dollar federal budget, yet a compelling signal that a change was needed.

"The Mint is the government office in charge of making money." - Ed Moy

The Penny’s History

The Lincoln cent’s design shift in 1909 marked a lasting symbol of American identity. The episode emphasizes how artifacts such as the penny reach beyond economics to become cultural touchstones, exemplified by Lincoln’s image appearing in classrooms, museums, and even artwork. It also notes the penny’s remarkable circulation—hundreds of billions in use—and how a generation’s cash habits have shifted away from coins toward digital payments, reducing demand for physical coins and pressuring the Mint to reevaluate production decisions.

"This coin has fascinated me since I was a kid," - Robert Wexler

The Economics of Penny Production

The piece presents the core economic argument: when production costs rise above the coin’s face value, continuing minting pennies becomes economically inefficient. The narrative outlines the rising cost trajectory from roughly 1.4 cents per coin in 2006 to about 3.7 cents by the time the final penny was minted, driven largely by metal price increases and material choices. It also recounts that alternative materials—such as steel or non-metallic composites—proved impractical due to performance, durability, or cost constraints. The discussion situates pennies within a broader financial context, describing how the resulting losses were dwarfed by the federal budget but nonetheless unacceptable as a long-term policy matter.

"We have enough pennies. It’s time to end the production of pennies." - Ed Moy

People, Places, and Public Reactions

The program features voices from Ed Moy, who served as Mint director from 2006 to 2011, Lincoln Museum staff in Illinois, and artist Robert Wexler, who created a 100,000-coin cube sculpture as a meditation on pennies. It highlights how institutions and individuals respond to currency changes—from museum exhibits that distribute pennies to schoolchildren to contemporary art that reinterprets a coin’s meaning. The narrative also touches on nickel costs and the broader question of what is gained or lost when a long-running currency denomination vanishes from daily life.

"Lincoln really is everywhere." - Christina Shutt

Conclusion and Legacy

The episode closes by reflecting on the penny’s legacy: a modest coin that became a mirror for national finance, technology, and cultural memory. It invites listeners to consider what coins represent beyond their monetary value and to imagine future forms of money and public memory in a world of evolving payment technologies and shifting consumer behavior.