The president of O’Leary Ventures, Kevin O’Leary, shares if he is concerned about President Donald Trump’s prices on steel and aluminum, the fate of the American Penny and the treatment of the sale of Tiktok.
President Donald Trump is trying to end the production of new money and recently told the Treasury Secretary Scott Bessent to get there.
Trump revealed that on Sunday evening, he “asked my American Treasury Secretary to stop producing new money”, arguing that “for too long, the United States has struck cents that literally cost us more than 2 hundred “and that” is thus a waste! “
Former President Donald Trump, the presidential republican candidate, arrives to speak during an electoral evening event at the Palm Beach Convention Center on November 6, 2024 in West Palm Beach, Florida. (Chip Somodevilla / Getty Images / Getty Images)
This decision raised the question of how American consumers could be assigned and, according to an expert, the impact will be negligible.
“I don’t think it has an impact on consumers. I think it’s just a very sensible thing to do, because no one uses no money. No one needs money,” told Fox Business David Bahnsen, founder of the Bahnsen group, in Fox Business. “Just like basic advantages and basic costs, the studies I have seen are that it costs three hundred to make a penny, so there is something rather behind in this mathematics.”
Trump is “right” to order the United States to abandon the “stupid” penny, says Kevin O’Leary
The cost of manufacturing and distributing a penny is 3.69 cents in 2024, indicated the last annual report in the United States.
The American Mint sent 3.17 billion new ones under last year. The gross cost of these money, $ 117 million, was significantly higher than their combined value of $ 31.7 million, according to the report.
“In terms of affecting consumers, does it make a difference in their expenditure habits so as not to have an exact change insofar as it exists? It is so marginal that it would be a rounding error,” declared Bahnsen.
The sous are displayed in Glenview Coin & Collectibles on July 6, 2006, in Glenview, ill. (Images Tim Boyle / Getty / Getty Images)
Canada has moved away from its version of The Penny over ten years ago, and other countries like Australia, New Zealand and Sweden have taken similar measures long before that. In Canada, after the government began to eliminate the money, backing or descending to the nearest five hundred has become common for cash transactions.
Trump says he asked the Treasury to stop entering new cents: “It’s so useless!”
Bahnsen said that cash transactions “are simply less likely to occur in a more digital payment environment,” noting that few people “pay with money” these days.
A report published last summer by Financial services of the Federal Reserve Found 32% of payments in October 2023 used credit cards and a similar share but slightly smaller – 30% – used debit cards. Cash payments, on the other hand, represented 16% of transactions, according to the report.
The Canadian government said in its 2012 Economic Action Plan that getting rid of SOUS in New Zealand, Australia and other countries “has not caused an increase in price inflation”.
The United States stopping the production of new ones would have little impact on advice, said Bahnsen.
He also noted that existing sub -subsidians will always be in circulation “but you really talk about a collection element, not a consumption element, not a transactional currency that people pay.”
“In the end, the reason for President Trump here was to be more effective, and I think that the Treasury Department was wasting a lot of money making money who do not have real commercial use,” Bahnsen told Bahnsen Fox Business. “It is not an overwhelming event, but it is something that is slightly more effective, and this is what the work of the treasure department is.”
The Americans for common hundreds, who criticized Trump’s efforts, argued in a press release from the end of January which abandon the penny “will not save the government”.
A stack of American cents in a photo illustration in Washington, DC, February 10, 2025. (Saul Loeb / AFP via Getty Images / Getty Images)
“Many general mint costs would remain and should be absorbed by other parts without the penny,” said Executive Director Mark Weller. “In addition, there would be greater demand for expensive nickels, which means even more costs.”
How Trump could get rid of the penny – and what could come for your portfolio change
The group receives significant funding from Artazn, according to CNN. This company would have provided whites that are used in the production of mint parts.
The Americans for common hundreds proposed to the government “re -examine how mint allocates its general costs and focus on reducing the cost of production of nickels” instead of moving away from money.
It cost the mint nearly 13.8 cents to produce a nickel last year, according to the agency.
The group also rejected Against the arguments that Le Penny has no value and argued that a “rounding tax” resulting from getting rid of the name to a center “would disproportionately affect people without access to banking services or Non cash payment methods.
