U.S. President Donald Trump has directed Treasury Secretary
Scott Bessent to halt the production of one-cent coins, commonly known as
pennies. The announcement was made via Trump’s Truth Social account.
"Let's cut waste from our great nation's budget, even
if it's just a penny at a time," Trump posted, framing the decision as a
cost-saving measure.
The move follows a post last month by Elon Musk's unofficial
"Department of Government Efficiency" (Doge) on X, which highlighted
the high cost of minting pennies.
The debate over the penny's usefulness and expense has been
ongoing for years. In his post, Trump called the coin’s production
"wasteful" and confirmed he had instructed the Treasury to stop
making new ones.
According to the U.S. Mint’s 2024 annual report, producing
and distributing a single penny costs 3.69 cents—far exceeding its face value.
While past efforts in Congress to eliminate the penny have failed, supporters
argue that the coin helps keep prices stable and plays a role in charitable
fundraising. Critics, however, see it as an unnecessary drain on resources.
Other nations have scrapped low-value coins for similar
reasons. Canada discontinued its penny in 2012 due to high minting costs and
declining purchasing power. The United Kingdom, facing a shift toward cashless
transactions, did not mint any new coins in 2024, citing sufficient
circulation. Although the UK Treasury has stated that 1p and 2p coins will
remain in use, production has been sporadic in recent years, with some
denominations going unminted for extended periods.
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