Elon Musk's DOGE Takes Aim At The US Penny Citing Soaring Production Costs

Billionaire Elon Musk-led Department of Government Efficiency has set its sights on an unexpected target: the U.S. penny, highlighting the coin’s staggering production costs that exceed its face value.

What Happened: In a recent X post, DOGE revealed that pennies cost over 3 cents to manufacture, resulting in $179 million in taxpayer expenses during fiscal year 2023. The U.S. Mint produced 4.5 billion pennies last year, representing approximately 40% of total coin circulation.

Current production costs render each penny economically inefficient. The coin’s composition — 97.5% zinc and 2.5% copper plating — costs more to create than its one-cent value. The U.S. Mint’s latest reports confirm the penny’s production expense at 3.07 cents per coin.

See Also: Netflix Crushed Q4 Thanks To Sports, Squid Game, Says Gary Black: Analyst Highlights Low Attrition Despite Price Hikes, Predicts Stock Upside

Why It Matters: Musk’s critique arrives amid growing debates about the penny’s relevance. Economic experts have long argued that maintaining low-denomination coins creates unnecessary financial burden. Several allied nations, including Canada and the United Kingdom, have already eliminated similar low-value coins.

The penny’s production involves a complex six-step process across four U.S. Mint facilities, with parts and labor accounting for 88% of manufacturing costs. Technological advancements and potential composition changes could offer future cost-reduction strategies.

Read Next:

• CNN Prepares To Lay Off Hundreds Amid Warner Bros. Discovery’s Digital Overhaul And Industry-Wide Shift: Report

Image Via Shutterstock

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.