Politics
Finance
In a move aimed at reducing what he termed "wasteful government spending," former President Donald Trump has suggested that the U.S. Treasury Department cease minting new pennies. This proposal reignites a long-standing debate about the necessity of the penny, with some arguing that its elimination could lead to price inflation. Meanwhile, the issue of coin disposal in the U.S. highlights a significant economic and environmental concern, as Americans discard substantial amounts of coins annually.
The Economic Impact of Coin Disposal
According to estimates from the sustainable-waste processing company Reworld, Americans throw away up to $68 million worth of coins each year1. This staggering figure underscores the value of coins that end up in landfills or incinerators. In response, companies like Reworld have begun recovering these coins from waste streams. Over the past seven years, Reworld has successfully recovered at least $10 million in coins from incinerated trash at a facility in Morrisville, Pennsylvania1.
The Process of Coin Recovery
At the Morrisville facility, advanced machinery is used to separate metals from incinerated debris. Once separated, the metals are washed using high-pressure hoses, resulting in buckets filled with valuable coins1. This process not only recovers significant economic value but also highlights the potential for reducing waste and promoting sustainability.
The Debate Over the Penny
The proposal to stop minting pennies is part of a broader discussion about the role of coins in modern currency. Proponents of eliminating the penny argue that it costs more to produce than its face value, making it a financial burden. However, others fear that removing the penny could lead to price increases, as businesses might round prices up to the nearest nickel.
Environmental and Economic Considerations
Beyond the economic implications, the disposal of coins also raises environmental concerns. The recovery of coins from waste streams can help reduce the environmental impact of mining and processing metals for new coins. Additionally, it underscores the need for more efficient waste management practices that can recover valuable materials before they are lost.
In conclusion, while Trump's proposal to stop minting pennies sparks debate about its necessity, the broader issue of coin disposal highlights both economic and environmental opportunities. By recovering discarded coins, companies can reduce waste and recover significant economic value, contributing to a more sustainable future.
Sources:
Oyin Adedoyin, The Wall Street Journal https://www.wsj.com/finance/americans-throwing-away-coins-28ca794c