If there’s one thing Americans understand, it’s that Washington has never met a dollar it couldn’t waste. From $500 hammers to million-dollar studies about the mating habits of butterflies, government officials have elevated wasteful spending into an art form.

But sometimes, the smallest examples of government inefficiency tell the biggest stories. While politicians debate trillion-dollar budgets in marble-lined chambers, millions of taxpayer dollars quietly disappear through tiny holes in the federal pocket – holes that previous administrations have known about for decades but conveniently ignored.

President Trump, however, has never been one to let government waste slide, no matter how small. Since taking office, he’s unleashed his Department of Government Efficiency (DOGE).

Led by Elon Musk, it is hunting down and eliminating wasteful spending wherever it hides. The contrast between this business-minded approach and the previous administration’s passive acceptance of waste couldn’t be clearer.

In a decisive move that has Washington’s special interests scrambling, Trump revealed he has directed Treasury Secretary Scott Bessent to halt the production of new pennies, citing the staggering fact that each one-cent coin costs more than two cents to produce.

From Truth Social:

“For far too long the United States has minted pennies which literally cost us more than 2 cents,” Trump wrote. “This is so wasteful! I have instructed my Secretary of the US Treasury to stop producing new pennies. Let’s rip the waste out of our great nations budget, even if it’s a penny at a time.”

The Hidden Cost of Small Change

The numbers behind penny production reveal a shocking pattern of institutional waste. According to the U.S. Mint’s 2024 annual report, each penny costs taxpayers 3.69 cents to manufacture – nearly four times its face value.

In fiscal year 2024 alone, the government lost $85.3 million producing these copper-clad symbols of inefficiency.

Even more troubling, the Mint has been knowingly producing pennies at a loss for 19 consecutive years, while both Republican and Democratic administrations turned a blind eye.

As DOGE pointed out in a January analysis, penny production cost American taxpayers “over $179 million in FY2023,” with the Mint churning out more than 4.5 billion of these money-losing coins.

Bold Leadership Meets Entrenched Interests

While Trump’s market-oriented approach to government waste reflects his successful business background, the path to implementing these common-sense reforms faces predictable resistance from Washington’s established power structure.

Some legal experts suggest that Congressional approval might be needed to fully eliminate the penny, similar to when the half-cent was discontinued in 1857.

The move has already drawn criticism from special interest groups deeply invested in maintaining the status quo. Americans for Common Cents, a group backed by zinc suppliers to the Mint, argues that eliminating pennies would lead to increased nickel production – though their very existence as a lobbying entity demonstrates how deeply entrenched wasteful spending has become in our government system.

Proven Solutions Already Exist

The free market has already demonstrated viable solutions to this government-created problem. Canada successfully discontinued its penny in 2012, with their economy showing no negative effects.

The U.S. Treasury’s own data suggests that following this market-tested approach could save American taxpayers billions over the next decade.

“This is exactly the kind of common-sense reform Americans have been waiting for,” said Robert K. Triest, an economics professor at Northeastern University. “While the process might require congressional action, the Secretary of the Treasury may have authority to simply stop minting new pennies.”

Trump’s action signals that in his administration, no government waste is too small to eliminate – and no special interest group is too entrenched to challenge.

After all, if we can’t trust the government to make a penny without losing money, what can we trust them with?

Key Takeaways

• Each penny costs taxpayers 3.69 cents to produce, resulting in $85.3 million in losses during 2024 alone.
• President Trump’s directive to halt penny production challenges decades of wasteful government spending.
• Special interest groups opposing the move reveal deep-rooted resistance to common-sense fiscal reforms.
• Other nations like Canada have successfully eliminated their pennies, proving the policy’s effectiveness.

Sources: Breitbart, AP News, Forbes