• The U.S. penny costs taxpayers over $179 million annually to produce.
• Elon Musk’s Department for Government Efficiency (DOGE) scrutinizes the minting process.
• Similar cost-cutting measures have succeeded in other countries like Canada.
• Critics question the practicality of maintaining the penny as cash transactions decline.
• The rising price of metals has increased penny production costs substantially.

The newly established Department for Government Efficiency (DOGE), led by Elon Musk, is taking a hard look at the U.S. penny, emphasizing its high production costs and proposing potential solutions. According to a recent post on X (formerly Twitter), DOGE highlighted that taxpayers spent more than $179 million to produce over 4.5 billion pennies in fiscal year 2023, which translates to more than three cents for each one-cent coin. This financial insight draws attention to the inefficiency and necessity of reviewing the future of the penny in the modern economy.

As humanity shifts toward digital transactions, the importance of cash, and specifically coins, is dwindling. The Federal Reserve's report from 2024 noted that only 16% of payments in the U.S. were cash-based, down from 18% the previous year, which indicates a need to reevaluate physical currency minting and production.

The U.S. Mint's report on the rising costs of penny production attributes the main driver to the increased prices of zinc and copper. The production cost rose from three cents per penny in 2023 to approximately 3.7 cents in fiscal 2024, marking a substantial increase of over 20% from the previous year. As detailed in an article by CNN, this staggering cost has led to widespread criticism, with stakeholders calling it a wasteful expenditure.

The DOGE’s post resonated with many, inciting a mix of responses on social media, indicating public sentiment towards maintaining or eliminating the penny. Supporters of the penny's elimination reference other countries that have successfully done away with similar coins, such as Canada, which halted production of its penny in 2012 due to the costs associated with minting them. Experts cite significant savings in taxpayer dollars following the phase-out in Canada, leading many to wonder if the U.S. can learn from this precedent.

However, advocates for keeping the penny argue that it remains an important part of American tradition. State legislators, including Iowa Senator Joni Ernst, have raised concerns about the government spending three cents to create a single penny while simultaneously addressing the foreign inspirations that shaped America’s currency policies.

With DOGE embarking on this controversial journey, it remains uncertain whether the penny will become obsolete or find new life in the face of economic modernization. Dialogue persists as Congress and the public evaluate the pragmatic necessity of maintaining such a coin in the United States.

For more insights on this topic, refer to the original articles by USA Today and Newsweek.