Well, it looks like Elon Musk’s Department of Government Efficiency (DOGE) has set its sights on one of America’s longest-running, and let’s be honest, most useless traditions—the penny. And honestly, about time. According to DOGE, producing the penny is costing taxpayers over $179 million a year, with each one-cent coin racking up a production cost of three cents. That’s right—three times its actual value. Only in Washington could something this ridiculous go on for so long.
In a statement that perfectly captures Musk’s signature mix of wit and brutal honesty, DOGE noted, “Penny (or 3 cents!) for your thoughts.” If nothing else, at least they’re keeping the humor alive while pointing out just how wasteful our government spending has become.
The penny costs over 3 cents to make and cost US taxpayers over $179 million in FY2023.
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…
— Department of Government Efficiency (@DOGE) January 22, 2025
For years, the debate over whether to scrap the penny has raged on, but the numbers are only getting worse. Back in 2016, it cost around 1.5 cents to make a penny, which—while still absurd—was at least half of today’s cost. But in true government fashion, they doubled down instead of fixing the problem. The U.S. Mint cranked out over 4.5 billion pennies in 2023, making up a staggering 40% of all coins produced that year. That’s a lot of copper and zinc going to waste when most people won’t even bother picking one up off the sidewalk.
Of course, this is just one small piece of the much bigger picture DOGE is tackling. President Trump established the department with a clear mission: “slash excess regulations, cut wasteful expenditures, and restructure federal agencies.” Musk, never one to shy away from a challenge, has set an ambitious goal of cutting $500 billion in federal spending. The penny, while a drop in the bucket, represents exactly the kind of inefficiency that has plagued Washington for decades.
So what’s next? Will the penny finally go the way of the dodo, or will the bureaucrats cling to it like they do every other outdated policy? Canada ditched its penny back in 2012, and while some feared economic chaos, the only real downside was grocery prices being rounded up—costing Canadians an estimated $3.27 million more per year. But hey, at least they weren’t wasting millions just to keep their one-cent coin in circulation.
Whether DOGE ultimately recommends the penny’s demise or just a production slowdown, one thing’s for sure—this is the kind of common-sense reform Washington desperately needs. Maybe it’s time to say goodbye to the penny and hello to fiscal responsibility.