Pennies, Penny Pools

Abstract

On Feburay 25, 2025, our president ordered the US Treasury to cease minting pennies. In this essay, I recount how members in Congress have tried to legislate the same - calling for rounding to the nearest nickel - but have not succeeded, some fearing that prevailing price structures (e.g., $xx.89) would leave customers on the short end of the stick over time with rounding up (customer loses) being more prevalent than rounding down (customer wins). I analyze the situation, then suggest how a “penny pool” might be used by retailers to ease the transition to a just and fair penny-less society.