Musk’s Efficiency Drive Sets Sights on the Penny

The U.S. Mint, Department of Treasury, in Philadelphia on Nov. 4, 2024. Madalina Vasiliu/The Epoch Times

Elon Musk’s Department of Government Efficiency (DOGE) is targeting the U.S. penny as something to eliminate to save costs.

“The penny costs over 3 cents to make and cost US taxpayers over $179 million in FY2023,” the department wrote in a post on Musk’s social media platform, X, on Jan. 21.

“The Mint produced over 4.5 billion pennies in FY2023, around 40 percent of the 11.4 billion coins for circulation produced. Penny [or 3 cents!] for your thoughts.”

The U.S. Mint’s 2024 annual report notes that the cost of producing one penny is now about 3.69 cents, up 20 percent from 2023. The Mint circulated roughly 3.2 billion pennies last year.

Inflation and the rising costs of metal have contributed to the increasing production costs.

Although copper accounts for only 2.5 percent of the modern penny’s makeup, its value has skyrocketed over the past two decades amid increasing demand for smartphones, electric vehicles, and other technologies that rely on the critical mineral.

With Americans increasingly turning to digital payment services, some have advocated eliminating cash in favor of a digital currency.

The idea of a cashless society was even heralded at the 2020 World Economic Forum as a vehicle to help “close the financial inclusion gap.”

On X, reactions to the proposal to get rid of the penny were mixed.

As some users voiced support, others urged caution, expressing the concern that it could start the nation down a slippery slope to government control over financial transactions.

President Donald Trump formally created DOGE earlier this week with an executive order renaming the United States Digital Service, an agency formed under President Barack Obama, to the United States DOGE Service.

The order also established that the new agency would exist within the Executive Office of the President.

The move was a departure from Trump’s initial stated plans for the advisory body to exist outside the federal government.

Instead, he created a temporary organization within the agency to advance his efficiency agenda through July 4, 2026, when the organization would be disbanded.

Trump tapped Musk to spearhead the initiative, though it remains unclear whether the tech mogul will head up the temporary organization as a volunteer or will hold a government role in the larger agency.

Biotech entrepreneur Vivek Ramaswamy was originally meant to lead DOGE alongside Musk. That changed earlier this week when Trump’s team announced that Ramaswamy would no longer be part of the department.

“Vivek Ramaswamy played a critical role in helping us create DOGE,” White House deputy press secretary Anna Kelly said following Trump’s inauguration on Jan. 20.

“He intends to run for elected office soon, which requires him to remain outside of DOGE, based on the structure that we announced today. We thank him immensely for his contributions over the last two months and expect him to play a vital role in making America great again.”

Ramaswamy has signaled his intention to launch a gubernatorial bid in his home state of Ohio.