New York (CNN) – Elon Musk’s Department of Government Efficiency (DOGE) has taken aim at the U.S. penny, highlighting its high production costs and declining utility. In a recent post on X (formerly Twitter), DOGE revealed that the penny costs over 3.7 cents to produce, costing taxpayers $179 million in FY2023. The U.S. Mint produced 4.5 billion pennies, accounting for 40% of all circulating coins last year.
Why the Penny Faces Scrutiny
The rising costs of metals like zinc and copper, combined with shifting consumer habits favoring digital payments, have made the penny increasingly impractical. According to the U.S. Mint, production costs for pennies surged 20% in FY2024, driven by higher material and manufacturing expenses.
Critics argue the penny rarely circulates, often ending up in jars or drawers. This debate isn’t new—calls to abolish the penny date back decades. In pop culture, it was even featured in a 2001 episode of “The West Wing”, where a character lamented the coin’s irrelevance.
Business and Productivity Implications
Eliminating the penny could save time and money for businesses. Jeff Lenard, VP at the National Association of Convenience Stores, noted that faster transactions could lead to 1,203 saved days annually across 52 million daily cash transactions.
Musk’s Role in the Trump Administration
Musk has become a prominent figure in the new Trump administration, following the establishment of the Department of Government Efficiency via executive action. The Wall Street Journal reported that Vivek Ramaswamy, initially brought in as a co-leader of DOGE, has since been sidelined.
