The American penny is once again facing scrutiny. DOGE, an organization spearheaded by Elon Musk to reduce government expenditures, argues that the penny is too costly to produce. The copper-colored coin costs more to manufacture than its actual worth.
According to DOGE’s statement on X, it costs taxpayers three cents to produce a one-cent coin, based on 2023 prices. A year later, the production cost increased to 3.69 cents, as reported in the annual report from the institution responsible for producing U.S. currency.
The future of the penny has been a topic of debate for years in the United States. Former President Barack Obama requested Congressional approval in 2012 to use cheaper metals to reduce production costs. Pennies are currently made from zinc with a thin copper plating.
Critics fear price hikes if pennies are phased out completely. Supermarkets may round prices up, potentially impacting consumers, especially when purchasing low-cost items.
In 2023, producing pennies cost $179 million, according to DOGE. This organization aims to make the government more efficient and cost-effective. Musk claims ministries waste substantial amounts of money and intends for DOGE to achieve $500 billion in savings annually.