$179 Million Vanishes Annually, Elon Musk Says It's Time to End the Madness

In a move that has ignited fierce debate across Washington and Wall Street alike, Elon Musk’s Department of Government Efficiency (DOGE) has launched a bold initiative to slash what Musk labels “institutionalized waste,” starting with a surprisingly controversial culprit: the U.S. penny. 

While the one-cent coin might seem like a harmless relic of American currency, it turns out the cost of producing pennies far outweighs their face value—and taxpayers are footing a staggering $179 million annual bill for it.

DOGE, the government division newly empowered to audit inefficiencies across federal operations, published a striking revelation on January 21 via X (formerly Twitter): “The penny costs over 3 cents to make and cost US taxpayers over $179 million in FY2023.”

The message wasn’t just rhetoric—it was grounded in data from the United States Mint’s 2024 annual report, which confirms that the unit cost to mint a penny rose to 3.69 cents. 

That year, nearly 3.2 billion pennies were produced at a net financial loss exceeding $86 million. But the full cost—including logistics, storage, and circulation inefficiencies—brings the estimated annual taxpayer burden closer to $179 million.

Musk, never one to shy away from a dramatic challenge, reportedly told close advisors at DOGE, “If we can’t fix a $179 million hole that literally jingles in our pockets, we’re not serious about government reform.”

The economics are hard to argue with. For over a decade, financial experts and former policymakers have raised alarms about the mounting cost of producing pennies, but change has been sluggish.

Former Congressman Jim Kolbe made multiple attempts in the 1980s and 1990s to phase out the coin, introducing legislation that was repeatedly blocked. President Obama, too, acknowledged the issue during a 2013 online town hall, noting the irrationality of producing a coin “people don’t even use.”

Now, under Musk’s directive, the issue is being revisited not as a political footnote but as a cornerstone of fiscal realignment. The DOGE program has been empowered to audit every line of government expenditure through a lens of return on investment. And in that calculus, the penny is indefensible.

The idea is simple: eliminate penny production and redirect resources to high-impact areas. On the consumer level, the change would be almost imperceptible. Retailers would round transactions to the nearest five cents—$1.99 becomes $2.00, $2.02 becomes $2.00, and so on. In aggregate, consumers wouldn’t lose money, but the government could reclaim tens of millions in losses each year.

Operationally, the benefits cascade through the system. Banks spend millions transporting and storing pennies. Businesses spend labor hours counting them, storing them, and balancing cash drawers. The IRS even spends unnecessary administrative effort accommodating fractional cents in personal tax records.

“The penny is the perfect example of analog inefficiency in a digital economy,” one DOGE analyst stated.

Musk’s approach isn't just about the penny—it’s about symbolism. DOGE has already made headlines for cutting nearly $2.3 billion in redundant government contracts and terminating over 5,000 non-essential federal positions. The penny, as Musk frames it, represents the institutional fear of change and the inertia that keeps waste alive.

The financial impact of eliminating the penny also ripples into markets. Should 2025 become the final year of penny production, numismatics experts predict a surge in demand for these “final batch” coins. Collector markets are already seeing increased listings for 2024 pennies, and some firms are preparing to mint commemorative copper tokens in anticipation of the coin’s possible exit from circulation.

That said, legal barriers remain. The United States Mint operates under Congressional mandate, and any permanent discontinuation of a coin requires legislative action. While DOGE and the Treasury Department have aligned under Musk’s direction to halt production, the Mint’s official position remains unchanged.

A spokesperson noted, “We are continuing penny production as required by current law. Any changes would require Congressional authorization.”

Capitol Hill appears divided. Fiscal hawks are embracing the elimination as a litmus test for broader reform. Moderates, meanwhile, worry about public backlash and economic ripple effects.

Though the average consumer rarely uses pennies, there remains an emotional attachment to the coin as a symbol of American tradition and thrift.

Public reaction, however, has shifted. Social media trends show growing support for the change, with hashtags like #EndThePenny, #CopperDrain, and #MuskMath gaining traction. A Gallup poll conducted in late March 2025 found that 63% of Americans support eliminating the penny, citing cost savings and simplicity.

For Elon Musk, this is more than a policy tweak—it’s a declaration of intent. His message is clear: the United States can no longer afford to ignore the compounding effects of small inefficiencies. In an economy driven by data and logic, sentimentality has no place in fiscal policy.

DOGE is expected to present a formal report to Congress by mid-June 2025 outlining the full costs, projected savings, and legislative roadmap for eliminating the penny. Insiders suggest the proposal may be packaged into a broader “Micro-Waste Reform Act” to streamline its passage and avoid isolated opposition.

As the fiscal year advances, the penny’s fate hangs in the balance. Whether it survives another year or is melted into history, one thing is certain: Elon Musk has forced a national conversation about cost, symbolism, and the courage to cut even the smallest forms of waste.

And in that conversation, every cent counts.