U.S. Government Efficiency Department Questions Future of the Penny

Elon Musk-led initiative highlights the high production cost of pennies and explores potential cost-saving measures.

The newly formed Department of Government Efficiency (DOGE), led by Elon Musk, has raised concerns over the U.S. Mint spending 3.7 cents to produce a one-cent penny, costing taxpayers $179 million in 2023.
DOGE's recent post on X renewed discussions about eliminating the penny, citing its limited utility due to inflation and the rise of digital payment methods.
Economists note that pennies are rarely used, with an estimated 240 billion pennies lying idle in the U.S., and suggest phasing them out as a logical cost-saving measure.
Other countries like Canada, which eliminated its penny in 2012, have saved millions annually by rounding cash transactions to the nearest five cents.
Despite widespread agreement on the inefficiency of the penny, legal and logistical hurdles, including unclear jurisdiction and potential opposition from interest groups, remain significant obstacles.