President Donald Trump signed an government order on January 20, 2025 to ascertain DOGE: the Division of Authorities Effectivity, led by Elon Musk, with a objective to chop spending.
A variety of applications, from range, fairness, and inclusion (DEI) to Daylight Saving Time to the venerable one-cent piece—sure, the penny—are on the potential chopping block.
In an X put up, DOGE wrote that it prices greater than 3 cents to make a penny, which price taxpayers over $179 million via 2023.
It’s true. The fee to make a penny jumped to three.69 cents, based on the 2024 U.S. Mint annual report. That marks the nineteenth consecutive yr that penny manufacturing prices have “remained above face worth.” In 2024, the U.S. produced about 3.23 billion new pennies, based on the U.S. Mint. Pennies have been essentially the most produced coin in each 2023 and 2024.
In an more and more cashless world, may Elon Musk be proper? Is it time to ditch the penny? Money utilization has been declining as a result of prevalence of bank cards, and debit playing cards, and the rise of cellular fee apps.
However, People nonetheless carry money and use it. Forty-four p.c of People say they use money for a few of their purchases, whereas 14% say they use it for all their purchases, based on a Pew Analysis Middle research.
3 causes DOGE could not be capable of eliminate the penny
- To make change. For these People who do pay in money, the penny is a vital device to make change. How would you make change for an $11.97 buy when you pay with a $20 invoice with out the penny?
- Eliminating the penny may make issues dearer. Canada did away with its penny within the early 2010s—and now purchases there are rounded to the closest nickel. For instance, a $11.83 buy turns into $11.85 in Canada now.
- Congress oversees our cash. In keeping with the U.S. Structure, it’s Congress (not DOGE) that’s liable for overseeing our cash and coinage.
How a lot may the U.S. save if it removed the penny? Stopping manufacturing of the 1-cent piece may save taxpayers as much as $100 million yearly, based on a 2022 Federal Reserve report. Whether or not or not DOGE takes motion to discontinue it, collectors will all the time prize and covet many particular American 1-cent items. Halting future manufacturing of the penny may improve numismatic demand for current uncommon pennies. Take a look at Blanchard’s present stock of small cents right here.
Wish to learn extra? Subscribe to the Blanchard E-newsletter and get our tales from the vault, our favourite tales from around the globe, and the newest tangible property information delivered to your inbox weekly.
