Musk’s Quest for Efficiency Targets the Cent

January 25, 2025 TruthUSA

Removing the penny is among the proposals from DOGE aimed at reducing government waste.

The Department of Government Efficiency (DOGE), headed by Elon Musk, is focusing on the U.S. penny as a target for elimination to cut expenses.

“Producing a penny costs over 3 cents and has cost taxpayers more than $179 million in FY2023,” the department stated in a post on Musk’s X platform dated January 21.

“The Mint fabricated over 4.5 billion pennies during FY2023, amounting to approximately 40 percent of the 11.4 billion coins minted for circulation.”

The U.S. Mint’s 2024 annual report indicates that the cost to produce a single penny has now risen to about 3.69 cents, a 20 percent increase from 2023. Last year, the Mint circulated roughly 3.2 billion pennies.

Inflation and the rising prices of metals have been factors contributing to the escalating production costs.

Although copper makes up only 2.5 percent of the contemporary penny’s composition, its value has surged over the last twenty years due to increased demand for smartphones, electric vehicles, and other technologies reliant on this essential mineral.

With more Americans turning to digital payment solutions, calls have emerged to phase out cash in favor of digital currency.

The notion of a cashless society was even celebrated at the 2020 World Economic Forum as a means to help “narrow the financial inclusion gap.”

On X, however, responses to the suggestion were varied.

While some users expressed support for eliminating the penny, others cautioned against it, warning that it might lead to greater government oversight of financial transactions.

Earlier this week, President Donald Trump officially established DOGE through an executive order that rebranded the United States Digital Service, originally created under President Barack Obama, to the United States DOGE Service.

The order also clarified that the new organization would operate within the Executive Office of the President.

This change represents a shift from Trump’s initial intention for the advisory body to function independently of the federal government.

Instead, he formed a temporary entity within the agency tasked with driving his efficiency agenda until July 4, 2026, at which point the organization will be dissolved.

Trump has appointed Musk to lead this initiative, although it’s still uncertain whether the tech entrepreneur will serve as a volunteer for the temporary entity or hold a formal government position within the broader agency.

Biotech entrepreneur Vivek Ramaswamy was initially slated to co-lead DOGE with Musk. However, earlier this week, Trump’s team announced that Ramaswamy would no longer be involved with the department.

“Vivek Ramaswamy was instrumental in our creation of DOGE,” White House Deputy Press Secretary Anna Kelly remarked following Trump’s inauguration on January 20.

“He plans to run for elected office soon, which necessitates his distance from DOGE, based on our newly outlined structure. We are deeply grateful for his contributions over the past two months and anticipate his continued role in making America great again.”

Ramaswamy has indicated his aspirations for a gubernatorial run in his native Ohio.

Source link