Trump Orders Treasury to Halt "Wasteful" Penny Production
Trump Orders Treasury to Halt "Wasteful" Penny Production.
US President Donald Trump has instructed Treasury Secretary Scott Bessent to cease the production of one-cent coins, commonly referred to as pennies, as stated in an announcement on his Truth Social media platform.
"Let's rip the waste out of our great nations budget, even if it's a penny at a time," Trump's post said, describing the move as a cost-cutting measure.
Following the recent commentary from Elon Musk's unofficial Department of Government Efficiency (Doge) regarding the expenses associated with minting pennies, which was highlighted in a post on X last month, the discussion surrounding the financial implications and practicality of pennies continues to be a longstanding issue in the United States.
"This is so wasteful," Trump's Truth Social post said.
"I have instructed my Secretary of the US Treasury to stop producing new pennies."
According to the 2024 annual report from the US Mint, the production and distribution of a one-cent coin incurs a cost of 3.69 cents.
In previous instances, US government officials and members of Congress have attempted to eliminate the penny, but these efforts have not been successful.
Critics of the penny contend that the zinc and copper coin represents a misuse of financial and material resources, while proponents argue that it helps maintain lower prices and enhances fundraising efforts for charitable organizations.
Several other nations have opted to eliminate similar denominations. For example, Canada discontinued its one-cent coin in 2012, citing the expenses associated with minting it and its diminishing purchasing power in light of rising prices.
Trump’s decision to halt penny production may appear fiscally responsible, but it raises concerns about unintended consequences. Eliminating the penny could lead to rounding prices up, subtly increasing costs for consumers. Charities that rely on penny donations may also suffer, losing a valuable fundraising tool.
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Furthermore, this move seems more like a publicity stunt than a well-thought-out policy, especially given Trump’s history of grandiose but superficial cost-cutting measures. While penny production is inefficient, abruptly discontinuing it without a structured transition could create confusion and disruptions. This decision prioritizes political optics over practical economic reform, leaving Americans with unanswered questions.
