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Elon Musk Department of Government Efficiency (DOGE) It is looking for ways to reduce government spending. One of its first targets could be Penny.
Doge, who officially became part of the government on Tuesday after the president Donald Trump signed an executive order posted on X that the production of the penny costs American taxpayers tens of millions of dollars, indicating that it may be one of those things that may be eliminated.
Musk's initiative, aimed at cutting $2 trillion in federal spending, did not directly state that the penny would disappear, but emphasized that it would cost three times more to produce than it is actually worth.
Each penny will cost 3.69 cents to produce in fiscal year 2024 and cost taxpayers $119 million, according to the U.S. Mint. This marked the 19th consecutive year in which production exceeded face value.
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In the United States, the penny was one of the first coins produced by the United States Mint after its establishment in 1792. When first produced, the coin was larger and made of pure copper. According to the US Mint, today's smaller coin is mostly made of zinc.
By comparison, the Canadian government removed the penny from its coinage in 2012 because inflation eroded its purchasing power.
“Over time, the burden of the penny on the economy has grown relative to its value as a means of payment,” reads the government's 2012 Economic Action Plan.
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At the time, the penny retained only about one-twentieth of its original purchasing power.
“Given the declining value of purchases, some Canadians find the penny more useful than a coin,” the report said.
Each penny will cost 3.69 cents to produce in fiscal year 2024 and cost taxpayers $119 million, according to the U.S. Mint. (Tim Boyle / Getty Images) / Getty Images)
The penny is just one of many that Doge may look to eliminate as he sets his sights on cutting $2 trillion in federal spending. However, Musk admitted in early January that Doge may not reach its $2 trillion target.
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“I think we're going to try $2 trillion. I think that's like the best outcome,” Musk told Mark Penn. By receiving $1 (trillion). “