US Treasury Secretary Scott Bessent has received directives from President Donald Trump to cease the production of one-cent coins, commonly referred to as pennies, as stated in a recent announcement on his Truth Social media platform.
In a recent post, Trump advocated for thoroughly examining the national budget, emphasising the importance of eliminating wasteful spending, even if it means saving just a penny at a time. He characterised this initiative as a strategic cost-cutting measure.
Following a recent post on X, Elon Musk‘s unofficial Department of Government Efficiency (Doge) has highlighted the expenses associated with minting pennies, sparking considerable interest.
The discussion surrounding the financial implications and practicality of pennies has persisted for many years in the United States.
Trump expressed his disapproval in a post on Truth Social, stating, “This is so wasteful.”
“I have directed my Secretary of the US Treasury to cease the production of new pennies.”
The US Mint’s 2024 annual report reveals that the production and distribution of a one-cent coin incurs a cost of 3.69 cents.
In previous attempts, US government officials and members of Congress have sought to eliminate the penny, but these efforts have not succeeded.
Critics of the zinc and copper coin contend that it misallocates financial and material resources. In contrast, proponents assert that the coin helps maintain lower prices and enhances fundraising efforts for charitable organisations.
Several nations have opted to discontinue comparable coins. In 2012, Canada eliminated its one-cent coin, driven by the rising costs associated with its production and the diminishing purchasing power attributed to escalating prices.
The UK’s decision to refrain from minting new coins in 2024 reflects a significant trend: the declining use of cash. Officials concluded that the existing supply of coins in circulation was sufficient to meet current demand.
The UK Treasury has confirmed that 1p and 2p coins will not be eliminated from circulation. However, the shift towards cashless transactions has resulted in multiple years of not producing 2p coins. The 20p coin has experienced several intervals during which no new minting occurred.
