Trump Announces End to Penny Production
In a bold cost-cutting move, President Donald Trump has directed Treasury Secretary Scott Bessent to halt the production of pennies, citing their high manufacturing cost. The announcement came via a social media post as Trump returned from the Super Bowl, stating that the coin costs more than 2 cents to produce.
“For far too long, the United States has minted pennies which literally cost us more than 2 cents. This is so wasteful! I have instructed my Secretary of the US Treasury to stop producing new pennies. Let’s rip the waste out of our great nation’s budget, even if it’s a penny at a time,” Trump wrote.
The Penny Debate: Why End Production?
The penny’s future has been debated for years, with critics arguing that it has become economically inefficient. The US Mint revealed in its 2024 fiscal report that each penny costs 3.7 cents to produce—a 20% increase from the previous year. Rising zinc and copper prices have significantly contributed to this cost surge.
In fact, a New York Times Magazine report recently described the penny as a symbol of inefficiency, emphasizing that policymakers have long recognized the need for its elimination but failed to act.
Elon Musk’s Push for Change
The debate gained further momentum last month when Elon Musk’s Department of Government Efficiency posted on X (formerly Twitter), highlighting the financial burden of penny production. The move has led to speculation about whether other coins, such as the nickel, might be next.
Could Nickels Be Next?
In 2013, a piece published by the Brookings Institution suggested not only stopping penny production but also eliminating nickels and rounding transactions to the nearest dime. The logic? Nickels cost more than their face value to produce, and rounding prices could simplify everyday transactions.
Read More: Panama Rejects US Government’s Claim on Canal Fee Exemption for Military Ships
What’s Next for U.S. Currency?
With the end of penny production, experts are debating potential next steps. Some key possibilities include:
✔ Eliminating the nickel due to similar cost inefficiencies
✔ Rounding transactions to the nearest 5 or 10 cents
✔ Shifting to digital transactions to reduce reliance on physical cash
Bottom Line
Trump’s decision to halt penny production marks a significant moment in U.S. currency history. Whether this move leads to broader changes in coin circulation remains to be seen.
📌 What do you think? Should the U.S. eliminate other coins as well? Let us know in the comments!
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