Elon Musk’s DOGE is Coming for the Penny

Elon Musk’s Department of Government Efficiency (DOGE) has set its sights on the U.S. penny, citing the high costs associated with producing the one-cent coin.

In a post on X, DOGE revealed that the penny cost U.S. taxpayers over $179 million in the 2023 fiscal year, with each coin requiring more than three cents to produce. The statement noted that the U.S. Mint manufactured over 4.5 billion pennies in 2023, accounting for 40% of all coins produced for circulation.

The rising costs are attributed to increasing prices of metals like zinc and copper. The U.S. Mint’s 2024 annual report estimates the production and distribution of a penny now costs about 3.7 cents – an over 20% increase compared to the previous year.

Renewed Debate Over Penny Elimination
Musk’s initiative to reevaluate the penny is not a new concept. Calls for its elimination have persisted for years, with critics highlighting the coin’s limited use in daily transactions. Many pennies end up in jars or drawers rather than in circulation, particularly as digital payments and online shopping gain popularity.

The debate over the penny’s relevance has even been reflected in pop culture, such as a 2001 episode of The West Wing, where the character Sam Seaborn decries the coin’s inefficiency. More recently, a New York Times Magazine piece argued that the penny has become a “symbol of deeper rot” in government inefficiency.

Experts also highlight the time savings businesses could achieve by eliminating the coin. Jeff Lenard, vice president of strategic industry initiatives at the National Association of Convenience Stores, estimated that removing pennies could save cashiers and customers a combined 104 million seconds per day in convenience stores alone, leading to significant productivity gains.

Musk’s Role in the New Government Efficiency Effort
This initiative is one of the first major undertakings by the Department of Government Efficiency, formally established by President Donald Trump through an executive order this week. While Vivek Ramaswamy was initially appointed to co-lead the department with Musk, reports indicate he has been removed from the role, leaving Musk as the driving force behind the department’s reforms.

With its focus on eliminating waste and cutting costs, DOGE’s push to phase out the penny could spark broader discussions about modernizing the U.S. currency system.