Texas Border Business
Texas Border Business
In a bold move to curb government spending, former President Donald J. Trump announced on Sunday via his TRUTH Social platform that the United States will no longer produce pennies. The decision comes as part of an effort to eliminate unnecessary costs from the federal budget.
“For far too long, the United States has minted pennies which literally cost us more than 2 cents. 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 nation’s budget, even if it’s a penny at a time,” Trump declared.
The announcement highlights a long-debated issue in American economics. The cost of producing a single penny has exceeded its face value for years, with estimates showing that each penny costs roughly 2.7 cents to mint. Given the billions of pennies in circulation annually, this results in millions of dollars in losses for the U.S. government.
Critics of the penny have long argued that its elimination would streamline commerce and reduce inefficiencies. Many transactions now occur digitally, and cash purchases frequently involve rounding to the nearest nickel. Countries like Canada, Australia, and New Zealand have already phased out their lowest-denomination coins without significant economic disruption.
However, opposition to retiring the penny remains. Some worry about the impact on pricing and inflation, while others argue that rounding could increase consumer costs. Additionally, the penny holds sentimental and historical value, as it has been in circulation since 1793 and prominently features President Abraham Lincoln.Trump’s directive marks a significant step toward reducing government expenditures, aligning with his message of fiscal responsibility. However, it remains to be seen how swiftly the Treasury Department.
