The debate surrounding the U.S. penny's relevance and cost has been reignited by Dogecoin's (DOGE) recent criticism of its production expenses. In 2023, taxpayers spent over $179 million on producing coins, each costing over three cents. Despite decades of bipartisan acknowledgment of the penny’s inefficiency, congressional reform efforts have stalled. Elon Musk’s Department of Government Efficiency views the penny as a prime target for reducing governmental waste, but legislative action will ultimately determine its fate as cash usage continues to decline.
In fiscal year 2023, taxpayers spent more than $179 million producing over 4.5 billion pennies, with each coin costing more than three cents to make.
Despite bipartisan recognition of the penny's costs since at least the 1970s, efforts to phase out or reform the coin have repeatedly stalled in Congress.
Material costs are largely to blame for the penny's high cost, as it now contains nearly 98% zinc since 1982, causing its unit cost to increase by 12.9%.
As fewer people are using cash, the relevance of the penny diminishes, raising questions about its future in everyday transactions.
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