Trump Declares War on Waste: End of the Penny Era

In a bold move to address national budgeting concerns, President Donald Trump has instructed US Treasury Secretary Scott Bessent to cease the production of one-cent coins, commonly known as pennies. Making this announcement via his Truth Social account, Trump highlighted the financial impracticality of minting pennies, stating, “Let’s rip the waste out of our great nation’s budget, even if it’s a penny at a time.”

This decision follows increased scrutiny on the cost of minting pennies, which was notably brought to light by Elon Musk’s unofficial Department of Government Efficiency. According to the US Mint’s 2024 annual report, it costs 3.69 cents to produce and distribute a single penny, rendering it a losing financial venture for the government.

Historically, the debate over the penny’s practicality has been contentious. While critics argue that pennies waste money and resources, advocates claim they play a crucial role in maintaining lower prices and aiding charity fundraising efforts. Despite numerous proposals from government officials and Congressional members to abolish the penny, past attempts have been ineffective.

Looking to international examples, Canada eliminated its one-cent coin in 2012 due to similar concerns over production costs and diminishing purchasing power. In a related trend, the UK has not minted new 1p or 2p coins in 2024, as cash usage declines and the circulation of existing coins remains adequate. The UK Treasury has maintained that these smaller denominations are not being scrapped, but they’ve experienced years without new minting due to the shift towards cashless transactions.

Trump’s directive marks a significant shift in US fiscal policy, focusing on reducing governmental waste and addressing long-standing debates about currency effectiveness in today’s economy.