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Should the Trump administration retire the US penny? There are “good economic arguments” in favor, economists say

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Pile of coins.

President Donald Trump campaigned on, among other things, cutting costs. More than a week into Trump’s second term, it seems his administration is sparing no expense — not even a penny’s worth. The Department of Government Efficiency (DOGE), Trump’s cost-cutting task force run by billionaire Elon Musk, recently hinted at the possibility of decommissioning the one-cent coin. For DOGE, the issue is one of straightforward math. “The penny costs over 3 cents to make and cost US taxpayers over $179 million in FY2023,” DOGE posted on X on Jan. 21. “The Mint produced over 4.5 billion pennies in FY2023, around 40% of the 11.4 billion coins for circulation produced.”

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