The article talks of the how the $1 coin is so reviled when the lowly, tarnished penny is so revered. Pennies are everywhere, but where are the those $1 coins? The answer is in the federal banks. The Federal reserve banks hold about $1.4 billion in $1 dollar coins. That is enough to meet the demand for the next 40 years.
 |
| Much over half of $1 coins ever minted lie in government banks |
The article then goes on to say how useful the $1 coin could be to the US. They much more durable than paper money, and can far outlast them. With respect to public preference however, "paper beats rock", though the public preference of paper money over coin money comes at a cost. The federal government would save $4.4 billion within the next 30 years, or about $150 million a year if Congress decided to go with metal according to the GAO, which would like to see $1 paper notes phased out.
Despite this, the Treasury Department limits the number of minted $1 coins and declares that "it is not a prudent use of tax payer resources". The Federal Reserve continues to mint pennies and nickels which cost more to make then they are valued, yet it denounces $1 coins.
Many countries use $1 or more coins, like Japan, France, Germany, Canada, and the United Kingdom. Canada, in order to combat the public's preference of paper money, did away with $1 paper notes entirely. In Canada, the federal government experienced cost savings ten times their initial estimate.
Link to Dollar Coin website
Currently a Senate bill seeks to improve the circulation of $1 coins. GovTrack.us gives the bill a 1% chance of making it out of the committee.
This has to do with what we talked about in class when we talked about what a bill has to go through in order to become a law. This bill looks like it it will come to a short stop in its first few steps of existence at the Senate Committee.
As for my opinion, I very much agree with a shift to $1 coins instead of paper money because of its lasting money benefits it has for our country. I would be fine with giving up the convenience of $1 paper notes for the efficient production our currency. It worked out great for Canada, and so many countries find it an thrifty, economical choice.
Despite this, the Treasury Department limits the number of minted $1 coins and declares that "it is not a prudent use of tax payer resources". The Federal Reserve continues to mint pennies and nickels which cost more to make then they are valued, yet it denounces $1 coins.
Many countries use $1 or more coins, like Japan, France, Germany, Canada, and the United Kingdom. Canada, in order to combat the public's preference of paper money, did away with $1 paper notes entirely. In Canada, the federal government experienced cost savings ten times their initial estimate.
Link to Dollar Coin website
Currently a Senate bill seeks to improve the circulation of $1 coins. GovTrack.us gives the bill a 1% chance of making it out of the committee.
This has to do with what we talked about in class when we talked about what a bill has to go through in order to become a law. This bill looks like it it will come to a short stop in its first few steps of existence at the Senate Committee.
As for my opinion, I very much agree with a shift to $1 coins instead of paper money because of its lasting money benefits it has for our country. I would be fine with giving up the convenience of $1 paper notes for the efficient production our currency. It worked out great for Canada, and so many countries find it an thrifty, economical choice.
I think the new 100$ bills are really cool and look more eastern than our usual money, which I think is cool. I really think moving to a 1$ coin system is smarter though because then we wouldn't be able to waste as much money, we'd be using a system of monetary coins that actually have similar value to the amount assigned to them.
ReplyDeleteI would not want to change to a $1 coin system. I'm always losing coins, but I hardly ever lose the paper bills of money. I think that everyone likes paper money better and would be mad if we moved to a $1 coin. I know that it could help our economy, but how much of an effect could it really have if we moved to $1 coins.
ReplyDeleteI am surprised that $1 coins would cost less than $1 bills in the long run. I personally would not want to replace the bills with the coins because, like Andrew, I would lose them easier. I would also not like carrying the coins around. It is so much nicer to carry bills around in my wallet than try to carry coins in my pocket. I guess I would be willing to change if it really helped out the economy, but if it didn't effect it much I would much rather keep the dollar bill.
ReplyDeleteI like the idea of having more $1 coins throughout the financial system, that is if they do cost less. I can see how having such a large stockpile of $1 coins in the Federal Reserve would support the idea that the paper bill costs more than the coin. I think the Senate is doing the right thing on trying to get more coins into the system. I mean, if we've already got them, why not use them and save money along the way.
ReplyDelete