Time to Ditch the Penny? | #326

Time to Ditch the Penny? | #326

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Episode description

The Department of Government Efficiency (DOGE) may recommend we get rid of the penny.  It costs about 3 pennies to make one penny. That appears to be a big waste of taxpayer money, but is there an argument that it is worth it?  Dr. McCullough say ditch it and Dr. Jacobsen says don’t!  Both learn through the discussion a few things they did not consider before.  What’s the difference between stopping production of the penny, and taking away its ‘legal tender’ status. Tune into this episode to decide for yourself if the country is better off or worse without the penny.

The “Faith in Economics” podcast, produced by the Gwartney Institute at Ottawa University, explores the intersection of faith and economics as a means to aid human flourishing. In the episode, host Cole McRae converses with Dr. Russ McCullough, Dr. Justin Clark, and Dr. Peter Jacobson regarding recent developments in U.S. government efficiency efforts, particularly focusing on controversial figures like Elon Musk and initiatives like “Doge.” The panel discusses the idea of a “Doge dividend,” a proposed initiative where savings from government spending cuts would be returned to citizens in the form of checks, reminiscent of COVID stimulus checks, aiming to offer approximately $5,000 per American based on 20% of the budget cuts achieved.

The conversation emphasizes the need to restructure government expenditure and addresses the complexities of executing cuts responsibly, likening it to a surgical operation that inevitably removes some healthy aspects along with the waste. Dr. Jacobson and Dr. Clark express support for the dividend proposal, highlighting its potential to politically empower citizens and counter the narrative that tax cuts benefit only the wealthy. The economists advocate for a more significant percentage than 20% for dividends to encourage public awareness and engagement with government spending.

Diverse views regarding balancing the national budget and addressing the national debt also emerge. While Dr. Clark argues the importance of immediate compensation for spending cuts to bolster political will, Dr. Jacobson counters that the method whether through dividends or future tax cuts won’t ultimately impact debt responsibility. This lively discourse illustrates the nuanced relationship between government efficiency, fiscal policy, and citizen engagement, advocating for a systematic change that could reshape economic conditions while benefiting ordinary Americans through incentivized spending cuts. The episode concludes with reflections on the broader implications of the proposed Doge dividend amidst ongoing discussions about government deficits and accountability in spending.