For the last 232 years, a small circular piece of copper and zinc known as the penny has been the smallest denomination of currency in the United States. Originally introduced in 1793, the last one has been minted by the US Treasury department. While it was announced in May, there are already penny shortages all over the country that are costing companies money, and some stores are even paying people to bring in their unwanted pennies.
What's that old saying? You don't miss something until it's gone? Maybe the penny was more important than we thought. But the old one-cent coin had been fighting a losing battle for respect for years. You can't buy anything with them anymore, not even a gumball. Most of us just toss them into a junk drawer or a glass jar. A sad penny can even lie on a sidewalk all day and not get scooped up.
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The US Mint struck the last pennies marking the end of an era. According to the Mint, it was costing 3.69 cents to make every penny. That is hardly a smart return on investment for taxpayers. However, with the discontinuation of penny production, some brick-and-mortar businesses across the country have been unable to give exact change because they lack sufficient pennies, if any.
A Retail Industry Leaders Association survey revealed that thousands of stores have no pennies, and they are calling on the federal government to take action.
Grocery chain Price Chopper and Market 32 recently held a Double Exchange Day, when people brought in their pennies and received double the value back in the form of a shopping voucher. Similarly, grocery chain Giant Eagle offered gift cards worth twice the amount of pennies customers brought in during a one-day event on Nov. 1.
Millions at stake
CBS News asked several large companies how they would handle cash transactions if there were shortages of pennies at the counter. McDonald's said its restaurants would round up or down to the nearest nickel, meaning an order costing $12.43 would round up to $12.45, but an order costing $12.42 would round down to $12.40.
Wendy's, Kwik Trip, and GoTo Foods — parent company of Auntie Anne's, Cinnabon, Jamba and Carvel — all said they would round down to the nearest nickel in favor of the customer. Kroger will encourage customers to use exact change, but still accepts pennies.
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