Posted on 01/24/2025 9:34:10 AM PST by Diana in Wisconsin
Elon Musk’s Department of Government Efficiency has a new target to cut down costs: the US penny.
DOGE said on X that the penny costs over 3 cents to make and cost US taxpayers over $179 million in the 2023 fiscal year. “The Mint produced over 4.5 billion pennies in FY2023, around 40% of the 11.4 billion coins for circulation produced,” the post read in part.
The US Mint in 2023 reported it circulated around 4.1 billion pennies. In fiscal year 2024, the US Mint said in its annual report that the US penny costs about 3.7 cents to produce and distribute, up more than 20% from the previous year. The rising cost of metals, including zinc and copper, is part of the reason it’s getting more expensive to make the coin.
Musk isn’t introducing a novel idea. For years, people have advocated eliminating the penny, as pennies are rarely spent as change. And since the Covid-19 pandemic, more consumers are shopping online or avoiding physical currency altogether.
More than 20 years ago, in a 2001 episode of the political drama “The West Wing,” fictional character Sam Seaborn goes into a rant about the penny.
“Majority of pennies don’t circulate. They go in jars, sock drawers,” Seaborn said.
(Excerpt) Read more at channel3000.com ...
If they stop making them it will be decades before we have a serious shortage of them. By then, one way or another, it simply won’t matter. There used to be half-pennies and it’s not like anyone struggles to make a transaction because we no longer have them. This is another example of a blazing obvious decision that just needs to be made to cut down on government waste.
That would be inflationary as almost every vendor will round up to the nearest five cents, not down.
For some odd reason, I find a lot of pennies here on the ground at car lots, used and new..................
so, instead of a .99 cent price, it becomes a whopping $1.05!!
Do you really see the price of ANY consumer goods ever coming down again?
Maybe gasoline? Heating Oil?
Drill, Baby! DRILL! :)
Might as well take the nickel too.
I always pick up coins and save them and any ‘pocket change’ in a big old milk jug. When I cash it in at the end of the year, usually before Christmas, there’s always $200.00 or more in there.
Easy Money. :)
I have been calling for the death of the penny for decades.
Even though the nickel is my favorite coin they should consider its demise as well.
The dime is also and embarrassment considering how its manufacture has been cheapened.
We should also stop minting paper dollar and five dollar notes.
Replacing paper dollars with two dollar coins as the Canadian did is a possible alternative. I would say our dollar is at least as devalued as the Canadian dollar was at the time of their move.
We just have to come up with a catchy name like the Loony. Maybe we can come up with an alloy with a green tint and stick with the nickname GreenBack.
When I worked in Brazil in the mid 70s, the country had introduced a "New Cruzeiro" about eight years earlier. The Brazilian cruzeiro (1967–1986), denominated cruzeiro novo between 1967 and 1970 in the transition from the previous standard banknotes to the new banknotes issued by Casa da Moeda do Brasil to avoid confusion between the old and the new currency, worth 1.000 old cruzeiros.
If we don't do that, getting rid of the penny will lead to getting rid of the nickel in 20-30 years then the dime 20-30 years after that. It's a path to a "new" currency" without specifically creating one.
Of course, with the whole digitization of money, who needs coins and paper bills? I hardly ever touch the stuff.
“We just have to come up with a catchy name like the Loony.”
How about: ‘The Trumpy?’ ‘The Musky?’ LOL!
Another one of my ‘inheritances’ from Grandpa was his collection of Wheat Pennies. Been going through them for a decade now, and still not a one of any value...beyond a penny. :(
Thanks a lot, Grandpa, LOL!
I found one that could have been worth $0.37 if someone had not drilled a hole in it!
As of tomorrow morning, every Federal agency except the military and Social Security, will see their budgets cut by 10%. Those savings will be immediately applied to the Federal deficit. Administrators will be expected to provide equal or better service than before. If you cannot do this, I will find someone who can. Have a nice day.
Canada had an interesting approach to this. Cash transactions are rounded up or down to the nearest $.05, but electronic transaction are reported to the cent.
Canada got rid of the cent years ago for the exact reason of it costing more than they are worth. Things are still priced in cents but rounded up or down to the nearest 5 cent point if you actually use cash.
If always rounded up, it is estimated it would cost consumers 3.7 M.
I suggest denominations of 1,2,6 & 7 be rounded down with denominations of 4,5,8, & 9 be rounded up.
I remember as a kid when individual bubble gum was 1/2 cent. Candy bars were a nickel and sales tax was 2%. Anything under $.50 was not taxed. Sheesh I sound like my Grandparents
I was a coin collector when I was a kid, eventually turned away because of the massive fraud and scamming that has overrun the business - but coins and coinage are important and we are long, long overdue for a recoinage to reflect current conditions.
The one cent coin, as 1/100 of the current dollar, is obsolete and should be abandoned. The nickel, too - but I could be behind a one cent coin - with Lincoln the tyrant on it, even - as 1/100 of a revalued dollar.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.