High Finance
OK, so...you may have heard the news that the US Mint is going to make another attempt with a dollar coin, starting in Spring 2007. Yes, apparently the ill-fated Susan B. Anthony dollar and the Sacajawea dollar weren't enough of a lesson, so they are going to release President dollars (like the state quarters that we have been privileged to have for the last several years). They think that having MEN on the dollars might succeed where women have failed.
Now, here's the thing: after about 5 minutes of research, I WANT the USA to switch to dollar coins. Not because I really like shiny things, but because of a few basic facts.
This has been something that has been discussed often in the Senate since at least 1995. In 1995, the numbers they threw around were as follows: the government could save $150 million annually by switching to $1 coins from bills. How is that possible, you ask? Well, it costs 8 cents to produce a dollar coin, but only 3.8 cents to create a dollar bill, but it's a false economy, because the average life span of a bill is 18 months, whereas coins have an average lifespan of 30 years. Think about that. We can print 1 coin, or 20 bills.
Now, I'm not a mathematician. But it seems to me that it is a better deal to print coins than bills, in that case.
The pessimists in the govenment keep moaning and whining that dollar coins always fail. Well, take a lesson from our neighboUrs to the north - when Canada introduced the Loonie they just took away the dollar bills (according to Wikipedia that was in 1987, but Wikipedia also claimed that John Siegenthaler assassinated President Kennedy - coming soon to a dollar coin near you! - so I don't tend to take Wiki too seriously. Let's just say that Canada introduced the Loonie within living memory). And, all of a sudden, dollar bills are a thing of the past. Next they introduced the Toonie (a 2 dollar coin, which would cut down on the heaviness of your pants pockets, I would think).
So, here's my point: I personally think that we have better ways to spend $150 million each year. Honestly, don't you think that we could find another way to spend that money?
I say, just have the spine to make the switch. We'll adjust. Put the $150 million x 25 years into the "Let's Save Social Security" fund (since I would like to retire by my 70th birthday).
Now, here's the thing: after about 5 minutes of research, I WANT the USA to switch to dollar coins. Not because I really like shiny things, but because of a few basic facts.
This has been something that has been discussed often in the Senate since at least 1995. In 1995, the numbers they threw around were as follows: the government could save $150 million annually by switching to $1 coins from bills. How is that possible, you ask? Well, it costs 8 cents to produce a dollar coin, but only 3.8 cents to create a dollar bill, but it's a false economy, because the average life span of a bill is 18 months, whereas coins have an average lifespan of 30 years. Think about that. We can print 1 coin, or 20 bills.
Now, I'm not a mathematician. But it seems to me that it is a better deal to print coins than bills, in that case.
The pessimists in the govenment keep moaning and whining that dollar coins always fail. Well, take a lesson from our neighboUrs to the north - when Canada introduced the Loonie they just took away the dollar bills (according to Wikipedia that was in 1987, but Wikipedia also claimed that John Siegenthaler assassinated President Kennedy - coming soon to a dollar coin near you! - so I don't tend to take Wiki too seriously. Let's just say that Canada introduced the Loonie within living memory). And, all of a sudden, dollar bills are a thing of the past. Next they introduced the Toonie (a 2 dollar coin, which would cut down on the heaviness of your pants pockets, I would think).
So, here's my point: I personally think that we have better ways to spend $150 million each year. Honestly, don't you think that we could find another way to spend that money?
I say, just have the spine to make the switch. We'll adjust. Put the $150 million x 25 years into the "Let's Save Social Security" fund (since I would like to retire by my 70th birthday).
posted by The Big Seester | 2:34 PM
9 Comments:
It's always surprised me that the US doesn't have $1 (and $2; even $5) coins. The UK's had £1 coins for about 20 years and £2 coins for 10 and there's been talk of a £5 coin (£1 notes are still issued in Scotland, but that's another story). Most of Europe has 1 and 2 Euro coins (before the advent of the Euro, there were 1, 2 and 5 Franc and Mark coins).
Why the problem? It's not as if anyone loses anything, is it?
P.S. When the £1 coin was issued in the 1980's it was nicknamed the Thatcher because "it was thick and brassy and thought it was a sovereign".
It's always surprised me that the US doesn't have $1 (and $2; even $5) coins. The UK's had £1 coins for about 20 years and £2 coins for 10 and there's been talk of a £5 coin (£1 notes are still issued in Scotland, but that's another story). Most of Europe has 1 and 2 Euro coins (before the advent of the Euro, there were 1, 2 and 5 Franc and Mark coins).
Why the problem? It's not as if anyone loses anything, is it?
P.S. When the £1 coin was issued in the 1980's it was nicknamed the Thatcher because "it was thick and brassy and thought it was a sovereign".
It's always surprised me that the US doesn't have $1 (and $2; even $5) coins. The UK's had £1 coins for about 20 years and £2 coins for 10 and there's been talk of a £5 coin (£1 notes are still issued in Scotland, but that's another story). Most of Europe has 1 and 2 Euro coins (before the advent of the Euro, there were 1, 2 and 5 Franc and Mark coins).
Why the problem? It's not as if anyone loses anything, is it?
P.S. When the £1 coin was issued in the 1980's it was nicknamed the Thatcher because "it was thick and brassy and thought it was a sovereign".
It's always surprised me that the US doesn't have $1 (and $2; even $5) coins. The UK's had £1 coins for about 20 years and £2 coins for 10 and there's been talk of a £5 coin (£1 notes are still issued in Scotland, but that's another story). Most of Europe has 1 and 2 Euro coins (before the advent of the Euro, there were 1, 2 and 5 Franc and Mark coins).
Why the problem? It's not as if anyone loses anything, is it?
P.S. When the £1 coin was issued in the 1980's it was nicknamed the Thatcher because "it was thick and brassy and thought it was a sovereign".
It's always surprised me that the US doesn't have $1 (and $2; even $5) coins. The UK's had £1 coins for about 20 years and £2 coins for 10 and there's been talk of a £5 coin (£1 notes are still issued in Scotland, but that's another story). Most of Europe has 1 and 2 Euro coins (before the advent of the Euro, there were 1, 2 and 5 Franc and Mark coins).
Why the problem? It's not as if anyone loses anything, is it?
P.S. When the £1 coin was issued in the 1980's it was nicknamed the Thatcher because "it was thick and brassy and thought it was a sovereign".
It's always surprised me that the US doesn't have $1 (and $2; even $5) coins. The UK's had £1 coins for about 20 years and £2 coins for 10 and there's been talk of a £5 coin (£1 notes are still issued in Scotland, but that's another story). Most of Europe has 1 and 2 Euro coins (before the advent of the Euro, there were 1, 2 and 5 Franc and Mark coins).
Why the problem? It's not as if anyone loses anything, is it?
P.S. When the £1 coin was issued in the 1980's it was nicknamed the Thatcher because "it was thick and brassy and thought it was a sovereign".
Hey Woja,
Welcome to the blog! Yes, when I was in Germany in the late 80s, I was amazed by the coinage. (This would have been right around the time that Canada would have been introducing the Loonie.) I don't understand why we don't - to me it seems like an obvious way to adapt and save some $$$.
Canuck,
I also must have all my bills facing the same way, so I completely understand. Plus I hate getting those ratty bills. Mr. Monk irons his with light starch...
Grin.
DJ,
Insomnia.
Woja,
BTW - that Thatcher comment was HI-larious!
TBS
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