The president of the United States, Donald Trump, said on Sunday that he had told the treasure to stop producing penny coins, presenting it as an effort to reduce government spending.
Trump wrote on his real social platform: “For too long, the United States has coined cents that literally cost us more than 2 cents. This is so wasteful.
“I have ordered my Secretary of the United States Treasury to stop producing new cents. Let's extract the waste from the budget of our great nation, even if it is a penny at the same time. “
The Government Efficiency Department, a cost reduction initiative led by billionaire Elon Musk that has helped reduce federal expenditure, highlighted the cost of producing cents in an X position in January.
The debates about the cost of production of cents are not new in the United States, and several bills have been introduced in Congress that they have not approved.
Trump's order would probably require the approval of legislators, but Treasury secretary, Scott Besent, can simply stop the minting of new cents, wrote economics professor Robert Triest of the Northeastern University in January.
The prices are probable to be rounded to the five closest cents if the cents are eliminated, Triest said.
Canada announced in 2012 that it was eliminating cents from its currency system, citing a production cost of 1.6 cents each and its falling falling down due to inflation.
Trump has made the reduction of the federal budget a prominent part of its new administration, and the Musk Dugos team has the task of investigating government spending.
However, the legality of some of the administration's efforts, including reducing the personnel of the United States Agency for International Development, has been challenged in court by Democrats and Trade Unions.
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