Brandon Parsons Discusses the Future of the Penny in Scripps News

As retailers across the nation face coin shortages, questions are emerging about the long-term future of the penny. In a recent Scripps News interview, Pepperdine Graziadio Business School faculty member and economist Brandon Parsons shared his insights on how businesses and consumers may adapt if the U.S. phases out the penny.

Parsons explained that while some companies are already rounding prices for cash transactions, the overall economic impact of losing the penny would likely be minimal. "I think that there is some practical implementation of rounding that businesses are going to do on the fly," he said. "But I don’t necessarily think it’s going to have a significant impact on a lot of consumers or businesses."

He also noted that the U.S. Mint currently spends nearly four cents to produce each penny, four times its face value, making the debate over discontinuing production as much a matter of cost efficiency as consumer convenience. "It’s pretty straightforward that we shouldn’t necessarily be producing money that costs more than it’s worth," Parsons said.

As the U.S. weighs potential next steps, Parsons’ perspective underscores the broader implications of monetary policy on everyday business operations and consumer behavior.

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