Trump Tells US Treasury Secretary to End Minting Pennies
Key Takeaways:
- Trump’s Decision on Pennies:
Former President Donald Trump has instructed the U.S. Treasury Secretary to cease the minting of new pennies due to their high production cost. Trump shared this directive on his Truth Social platform, calling the cost of manufacturing the penny a wasteful use of resources. - Cost of Production:
The cost to produce a penny exceeds its face value, with each coin costing more than 2 cents to make. Trump’s statement pointed out this financial inefficiency, describing it as “so wasteful.” - Support for Ending Penny Minting:
Many economists have long advocated for discontinuing penny production. For several years, it has been known that the U.S. government loses money on each penny minted. - Department of Government Efficiency’s Estimate:
Trump’s cost-cutting initiative, the Department of Government Efficiency (DOGE), led by Tesla CEO Elon Musk, has projected that the Mint loses over $100 million annually from penny production. According to the Mint’s annual report, the production cost per penny is approximately 3.7 cents. - Recent Restrictions on DOGE’s Access:
This announcement comes in the wake of a temporary restriction on DOGE’s access to the Treasury Department’s payment system, which was reported by The Wall Street Journal last week.
Full Article:
Former President Donald Trump made waves on Sunday night by announcing a significant financial decision: he instructed the U.S. Treasury Secretary to halt the minting of pennies. In a post shared on Truth Social, Trump emphasized that the cost of producing pennies—currently more than two cents per coin—is a “wasteful” expense. This move aligns with long-standing arguments from economists who have suggested the U.S. should stop minting the penny, which has been economically inefficient for many years.
In his post, Trump stated, “For far too long the United States has minted pennies which literally cost us more than 2 cents. This is so wasteful!” Trump added that he had directed his Treasury Secretary to put an immediate stop to new penny production, a decision aimed at curbing unnecessary government spending.
The U.S. Treasury Department did not respond to requests for comment on the directive at the time of publication.
The Financial Implications of the Penny:
The penny, which has a face value of one cent, has long been criticized for costing more to produce than it is worth. According to the U.S. Mint’s annual report, each penny costs approximately 3.7 cents to make. While the cost fluctuates slightly depending on metal prices, the overall loss per penny has remained significant. The Department of Government Efficiency (DOGE), an initiative designed to reduce wasteful government spending, has estimated that the Mint loses at least $100 million annually on the production of pennies.
The debate over the penny is not new. Economists, policy experts, and lawmakers have debated its utility for years, with many arguing that the coin serves no practical purpose in a modern economy dominated by electronic transactions. Proponents of phasing out the penny have pointed to the environmental costs and the inefficiencies inherent in producing a coin that is worth less than the materials and labor required to make it.
DOGE’s Role and Restrictions:
The announcement comes amid growing controversy surrounding the Department of Government Efficiency (DOGE), which was established under Trump to oversee and streamline government spending. DOGE is led by Tesla CEO Elon Musk, a high-profile advocate for reducing government waste.
However, DOGE’s access to the Treasury Department’s payment system was temporarily restricted last week, a move that raised concerns about the department’s ability to implement its plans effectively. The restriction was reported by The Wall Street Journal, but the reasons for the limitation remain unclear.
Despite this setback, Trump’s decision to halt penny production suggests that his administration remains committed to addressing inefficiencies in government spending. The cessation of penny minting is just one of many initiatives under consideration by DOGE, which has been tasked with finding ways to cut unnecessary costs and improve the efficiency of federal operations.
Potential Impact on the Economy:
If Trump’s directive is followed through, it could mark a significant shift in U.S. currency policy. The penny, while still in circulation, is rarely used in everyday transactions. Most consumers and businesses round prices to the nearest nickel, and many point out that the penny’s continued production is an anachronism in the modern economy.
Opponents of eliminating the penny, however, argue that it could lead to rounding issues for certain purchases, especially for those who are economically disadvantaged. Additionally, some people view the penny as an important symbol of U.S. currency and heritage, arguing that its elimination could erode public trust in the broader monetary system.
While the cost of penny production may seem insignificant in the grand scheme of federal spending, the decision to stop minting the coin could signal broader efforts to rein in government inefficiency. The economic impact remains to be seen, but the move has already sparked significant debate across political and economic circles.
The debate over whether to discontinue the penny has been ongoing for years, and Trump’s recent directive brings the issue back into the spotlight. With economists and cost-cutting initiatives like DOGE backing the end of penny production, the U.S. government may be one step closer to eliminating the coin altogether. Whether this will lead to broader changes in U.S. currency policy is uncertain, but it represents a key moment in the ongoing conversation about government efficiency and the future of U.S. currency.
Trump’s influence and DOGE’s leadership in pushing for efficiency could drive further efforts to streamline government operations and reduce wasteful spending in the years to come.
This article explores the continuing debate over the penny’s value, Trump’s cost-cutting approach, and the role of DOGE in government efficiency. The final decision on whether or not to halt penny production may depend on a variety of political, economic, and public considerations.
EXCERPT
Trump Tells US Treasury Secretary to End Minting Pennies
By Nisha Gopalan Published February 10, 2025 07:45 AM EST
Trump
Anna Moneymaker via Getty ImagesWhere to Exchange Currency Without Paying High Fees
Close
KEY TAKEAWAYS
President Donald Trump said he has instructed the US Treasury Secretary to stop minting new pennies, citing the coin’s cost of production.
The U.S. president said in a Truth Social post that the cost to produce the penny—at more than 2 cents—was “so wasteful.”
Many economists have called for the U.S. to stop manufacturing the penny, which for years has cost more to produce than it is worth.
U.S. President Donald Trump said Sunday night that he has instructed the Secretary of the U.S. Treasury to stop minting new pennies, citing their production cost.
1“For far too long the United States has minted pennies which literally cost us more than 2 cents. This is so wasteful!” Trump wrote in a post on his Truth Social platform. “I have instructed my Secretary of the US Treasury to stop producing new pennies.”
The Treasury Department didn’t immediately return a request for comment.
Many economists have called for the U.S. to stop manufacturing the penny, which for years has cost more to produce than it is worth. Trump’s cost-cutting task force, the Department of Government Efficiency (DOGE), has estimated that the Mint loses at least $100 million annually on pennies. That implies a production cost of 3.7 cents each, according to the Mint’s annual report.
The long-debated question of whether penny-production should stop comes as DOGE, which is led by Tesla (TSLA) Chief Executive Officer (CEO) Elon Musk, was restricted temporarily from accessing the Treasury Department’s payment system last week, according to The Wall Street Journal.
Source: Investopedia
