• Elon Musk's DOGE initiative highlights the high costs of producing U.S. pennies, with each coin costing over three cents.
• The U.S. taxpayer spent more than $179 million on pennies in fiscal 2023, manufacturing over 4.5 billion coins.
• The growing shift towards digital payments raises questions about the necessity of the penny's continued production.

As the U.S. government grapples with inefficiencies, Elon Musk's Department for Government Efficiency (DOGE) has targeted the cost of producing the U.S. penny as a significant waste of taxpayer dollars. According to a post on DOGE's official X account, the U.S. Mint spent over Business Insider $179 million in fiscal year 2023 on over 4.5 billion pennies, which translates to each penny costing taxpayers more than three cents to manufacture. With an increasing trend of cashless transactions, evidenced by a Newsweek report noting that only 16% of payments were made in cash in 2023, discussions about the penny's future are gaining momentum.

The relevance of this issue dates back several decades, with both political and public support often directed toward phasing out the penny. Advocacy for abolishing the coin intensified following findings that material costs, especially of zinc, have skyrocketed, making the penny's production more expensive. In light of these factors, Senator Joni Ernst from Iowa highlighted the coin's inefficiency on X, suggesting that it no longer makes sense economically for the government to continue minting pennies.

Historical calls to eliminate the penny indicate a long-standing awareness of the issue among lawmakers and the public. For instance, in a 2001 episode of the political drama, The West Wing, a character articulated frustration over the existence of the penny. More recently, experts in the retail sector have pointed out that cash transactions are less efficient due to the time spent handling pennies, which could be saved if the currency were discontinued. CNN reported that approximately 52 million cash transactions occur daily at convenience stores, suggesting that eliminating the penny could lead to considerable savings in transaction time.

While the Department for Government Efficiency, under Musk's guidance, aims to address such inefficiencies, the authority to abolish the penny relies on Congressional action or decisions from the Treasury. Despite these complexities, the committee's push for reform signals a significant move toward scrutinizing the financial practicality of outdated currency in modern commerce.

For further reading, refer to the full articles from Business Insider, Newsweek, and CNN.