Ever see a dollar coin?
The current Presidential $1 coins have been minted since 2007. The dollar coin has recently been thrown back into the spotlight by NPR after it’s reporting of the waste created by unused coins. But, contrary to NPR’s opinion, by eliminating the $1 paper dollar and switching our currency to use to the $1 coin, the US gov’t would save $184 million annually and $5.5 over 30 years. How does this work?
The $1 bill costs approx 5.5¢ to print with the average note lasting only 1.5 to 3.5 years before it’s shredded and thrown in a landfill.
The $1 coin costs approx 8¢ to mint, but could last to 30 years in circulation and is recyclable at the end of its life.
The total elimination of the paper $1 bill would save the Federal government billions in the long run. Of course in the first couple of years it would not make much of an impact, but that’s not exactly the $14 trillion dollar question we are worried about. Besides does it not make more sense to create savings in simple currency rather than $200 million out of social security, national defense or having to raise taxes? Why not switch?
The GAO’s report can be found here: http://www.gao.gov/new.items/d11281.pdf
KnightsofMalta
Steve Maley
Neil Stevens