Here’s why Elon Musk Wants to Kill the Penny

Elon Musk, leading the Department of Government Efficiency (DOGE) under President Donald Trump, has proposed eliminating the penny to reduce federal spending.

According to CBS News, in fiscal year 2023, producing over 4.5 billion pennies cost taxpayers $179 million, with each penny costing more than three cents to manufacture.

In simple words: Elon Musk wants to kill (eliminate) pennies as the coins cost triple of their value.

However, critics, such as Mark Weller from Americans for Common Cents, argue that eliminating the penny could lead to increased costs due to reliance on more expensive nickels.

A 2017 study suggested that pennies have an economic value of 55 cents over their lifetime. MarketWatch

But there are some countries like Canada successfully phased out the penny in 2012 by rounding retail prices up or down, without significant economic disruption.

Implementing a similar change in the U.S. would require legislative action to establish new pricing rules.

Musk’s broader mandate with DOGE includes cutting up to $2 trillion in federal spending by reducing inefficiencies across various government sectors.

Here’s why Elon Musk Wants to Kill the Penny