In a post on social network unnecessarily poor, according to CBS News.
Billionaire Elon Musk is the leader of the anti-waste advisory board for President Donald Trump
“It takes more than 3 cents to produce a 1-cent coin, and it costs Americans more than $179 million in taxpayer dollars in fiscal year 2023. The Mint produced more than 4.5 billion coins in fiscal year 2023, approximately 40% of the 11.4 billion coins produced for circulation,” DOGE announced.
The cost of minting coins has increased sharply over the years. The U.S. Mint’s 2024 annual report shows that it costs about 3.7 cents to produce and distribute a 1-cent coin.
The 1-cent coin is made of zinc and coated with a layer of copper. Zinc prices fluctuate from year to year, but 1 ton of zinc today costs twice as much as 1 ton of zinc in 2016. High production costs have caused many politicians to propose eliminating the use of 1-cent coins, but there are also opposing opinions. opposite to.
The Federal Reserve Bank of Richmond said in 2020 that discontinuing the 1-cent coin would be costly as transactions are rounded to 5-cent intervals. “For the purchase of a small item or item, rounding up or down can represent a large change in price,” the bank said.
Is the digital currency of President Trump and his wife harmful to the market?
In 2012, Canada stopped minting 1-cent coins, and according to a 2018 economic analysis, Canadian consumers pay about $3.27 million CAD more at convenience stores each year due to higher rounded prices.
On the other hand, using 1-cent coins also causes some disadvantages because traders have to spend time and effort counting change while there is a saying that time is money.
In addition to the expensive 1-cent coin, each 5-cent coin also costs 14 cents to make and that could be a potential target for DOGE.
President Donald Trump said DOGE will recommend cutting redundant regulations, cutting wasteful spending and restructuring federal agencies. Mr. Elon Musk said this advisory group aims to cut $500 billion in annual federal spending.
On January 20, President Trump signed an executive order officially establishing DOGE, which falls under the executive branch of government and focuses on upgrading information technology systems to maximize government efficiency and productivity. DOGE co-leader Vivek Ramaswamy recently announced he was leaving the advisory board to run for governor of Ohio.
