President Donald Trump has ordered an end to the production of the one-cent coin, commonly known as the penny, calling it a wasteful government expense. In a post on his Truth Social platform, Trump announced his directive to Treasury Secretary Scott Bessent, stating, “Let’s rip the waste out of our great nation’s budget, even if it’s a penny at a time.”
The decision follows renewed scrutiny over the cost of minting pennies, sparked by a post last month from Elon Musk’s unofficial Department of Government Efficiency (Doge) on X (formerly Twitter). The debate over whether the penny should be discontinued has been ongoing for years, but previous efforts in Congress to eliminate it have failed.
The Cost of a Penny
According to the US Mint’s 2024 annual report, producing and distributing a single penny costs 3.69 cents—far more than its face value. Critics argue that this inefficiency wastes government funds and valuable resources, as pennies are made primarily from zinc and copper.
Supporters of the penny, however, argue that keeping it in circulation helps prevent price inflation by maintaining small denominations for cash transactions. Some also highlight its role in charitable fundraising, as many donation programs rely on spare change collections.
A Global Trend?
The US is not the first country to reconsider the use of low-value coins. Canada phased out its one-cent coin in 2012, citing high production costs and declining purchasing power. The UK, while not officially scrapping its 1p and 2p coins, has not minted new coins in 2024 due to a decline in cash usage.
Despite this shift toward cashless transactions, Trump’s decision marks a significant policy move, one that could reignite debates over the future of physical currency in the US. While it remains to be seen how businesses and consumers will respond, one thing is certain—the penny’s days are now numbered.
