End Of The Penny ? Trump’s Plan To Cut Costs Sparks Controversy

The monetary symbols are not just mere coins; they embody eras, values, and habits rooted in a nation’s culture. However, in the United States, the existence of the penny is once again being questioned. Donald Trump, in pursuit of budgetary rationalization, wants to eliminate this one-cent coin, which he views as a waste of resources. This decision, far from being anecdotal, ignites a deep debate between economic necessity and attachment to American numismatic heritage. The measure, if enacted, could disrupt commercial habits and provoke adjustments in the daily lives of Americans.

An unbearable cost for the state

Donald Trump announced on his social network Truth Social that he has asked the Secretary of the Treasury to halt penny production, citing an unnecessary budget waste. “For far too long, the United States has minted one-cent coins that literally cost us more than 2 cents to produce. It’s waste!” he stated on February 10. The president relies on a report from the Department of Government Efficiency (DOGE), led by Elon Musk, which estimates that the cost of manufacturing a penny today exceeds 3 cents due to rising prices of zinc and copper.

This excessive financial loss represents an annual burden of 179 million dollars for American taxpayers. In light of this situation, Trump places this elimination within a broader framework of cutting public spending, aiming to save a total of 1 trillion dollars. If the White House and the Treasury Department validate the measure, the elimination of the penny could take effect without even going through a Congressional vote, according to economist Robert Triest from Northeastern University.

A debate that divides the population and resonates internationally

The announcement of this reform is not unanimous. Some observers fear it might trigger an artificial increase in prices due to the forced rounding of cash payments to the nickel (0.05 dollar). This concern is shared by some consumers, for whom the elimination of the penny could indirectly impact their purchasing power. Conversely, others view this coin as obsolete, especially since the rise of digital payments. The disappearance of the penny could even lead to a productivity gain through reduced currency handling.

This debate extends beyond the United States. Canada took the plunge in 2013 by ending circulation of its one-cent coin after noticing that its production cost exceeded its nominal value. This transition occurred smoothly, with rounded payments having no notable impact on prices. In Europe, the European Commission had considered a similar reform for 1 and 2 euro cent coins before abandoning it due to inflation-related pressures. The United Kingdom has been waffling on the issue for several years without making a concrete decision.

If the Trump administration manages to successfully implement this reform, it will mark a break with a historic symbol of American currency. But beyond the emotional aspect, this decision raises questions about the evolution of monetary systems in the face of the increasing digitalization of exchanges. The elimination of the penny could thus be the first step toward a gradual transition to a society less dependent on physical money. However, it remains to be seen whether this measure will garner sufficient political support to be enacted, or if it will join the long list of abandoned reforms, like so many other attempts before it.