Donald Trump announced Sunday that he has instructed Treasury Secretary Scott Bessent to halt the production of pennies, citing the high cost of producing one cent.
The penny costs over 3 cents to make and cost US taxpayers over $179 million in FY2023.
— Department of Government Efficiency (@DOGE) January 22, 2025
The Mint produced over 4.5 billion pennies in FY2023, around 40% of the 11.4 billion coins for circulation produced.
Penny (or 3 cents!) for your thoughts.
Sources:https://t.co/Y5LlrpyA62…
The government is set to save $179 million this year. While that might sound like a significant amount, in the grand scheme of the U.S. federal budget—projected at approximately $6 trillion for fiscal year 2025—it barely registers. To put it into perspective, $179 million amounts to just 0.00298% of the total budget.
With the potential phase-out of the penny, how will prices be affected? Economist William Dickens from Northeastern suggests that prices might actually drop in some cases.
“The item that once cost $2.99 might then cost $2.95,” Dickens says.
Ok. What’s the price of milk?. I don’t have a PHD in economics, but I can guarantee that business will round up to $3.00.
If we’re serious about saving money, here’s a thought: eliminate direct fossil fuel subsidies, which total approximately $20 billion per year. Let’s not pretend oil companies are struggling—they’re raking in record profits while still receiving government handouts.
Maybe instead of minor budget tweaks, we should start cutting waste where it actually matters.