President Trump's focus on reforming government spending has led him to target the 1-cent coin, announcing plans to end its production due to costs that exceed its value. He cited that pennies cost over 3 cents to produce, leading to substantial financial losses for taxpayers. This issue isn't new; it has been debated for decades and was supported by former President Obama. However, the authority for such a decision remains uncertain as Congress oversees the Mint's operations, raising questions about the actual feasibility of Trump's directive.
President Trump announced that he instructed the U.S. Treasury to stop producing pennies, calling them wasteful as their production costs exceed their value.
The penny has been deemed 'negative seigniorage,' costing more to produce than its face value, which has led to decades-long debates about its usefulness.
Even former President Obama supported eliminating pennies, stating that spending money on something people don't use is a situation that warrants change.
Despite the discussions, it remains unclear whether Trump has the authority to stop penny production, as Congress oversees mint operations.
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