Switching to a Dollar Coin: Seems Like a No-Brainer
| G-8 Country | Highest Widely Circulated Coin | U.S. Value | Lowest Bill | U.S. Value |
|---|---|---|---|---|
| Canada | 2 Dollar | $1.97 | 5 Dollar | $4.92 |
| France | 2 Euro | $2.77 | 5 Euro | $6.92 |
| Germany | 2 Euro | $2.77 | 5 Euro | $6.92 |
| Italy | 2 Euro | $2.77 | 5 Euro | $6.92 |
| Japan | 500 Yen | $6.01 | 1,000 Yen | $12.02 |
| Russia | 10 Ruble | $0.33 | 50 Ruble | $1.67 |
| United Kingdom | 2 Pound | $3.18 | 5 Pound | $7.95 |
| AVERAGE | $2.83 | $6.76 | ||
| United States | 25 Cents | $0.25 | 1 Dollar | $1.00 |
The chart above is based on data from the Dollar Coin Alliance (DCA), a coalition of small businesses, budget watchdogs, trade associations, and private companies advocating that the U.S. transition to the dollar coin. The DCA is asking Congress to eliminate the dollar bill in favor of the dollar coin to save billions annually in taxpayer money. According to the DCA:
3. Other countries have already recognized the cost savings and benefits of the dollar coin, including Canada, the European Union, and Japan. When Canada transitioned to a dollar coin 25 years ago, the government realized savings more than ten times initial estimates.
4. The United States has one of the smallest denominations of paper currency among the major economies of the world (G-8 Countries). The $1 bill is worth less than any of these other bills except for the Russian Ruble (see chart above).
5. According to a January 2011 poll, Americans favor the transition to a dollar coin by a two-to-one margin once the potential government savings are explained.
9 Comments:
Ugh. But, at the rate at which they're printing money there will be little point in even having denominations as low as $1.
Let me guess. It will be made of copper.... no silver. Look, haven't we all learned the US government is in the business of destroying the value of money, not economizing it.
Don't forget Australia! We have $1 and $2 coins, lowest bill is $5.
Switching to a dollar coin was the right "business" decision thirty years ago, but it won't happen because it will signify that the dollar has officially become small change.
Again... Americans don't want a dollar coin. They've voted. We have the Golden Dollar Coin and the Presidential Dollar Coin in circulation right now. Allegedly. Because no one is using them. Because we don't like them.
Make the dollar bill out of stronger stuff like tyvek. It will last longer and we won't be walking around with four large chunks of pot metal clanking in our pockets.
I don't think strippers will like it...especially dangerous if rap music moguls are forced to make it hail rather than rain.
Both are available and consumers seem to prefer the bills to the coins by magnitudes. That should tell us something
over the past couple of years I've ordered thousands of coin dollars directly from the US Mint. I get points on my credit card and they're fine-to-fun to use. Nieces and nephews enjoy a $25 roll as a present. More meters take them, too.
But most important, if you gamble with friends, there is no better way to pay off a $500 bet than leaving 500 James Buchanan memorial coins spilled out over a desk. If you really hate the guy, you can order sacks of nickels too.
While it sounds like a good idea to save some money, I have to disagree on this one, Mark. You're really just shifting the costs around, making the sort of poor people who routinely handle $1 bills carry the heavier coins, in order to save the govt and businesses some money. I'm fine with subsidizing the poor by printing dollar bills though, as it's a relatively small expense and dollar bills are easier for them to handle. However, talking about coins is really kind of backwards right now, as we're just starting to see wide deployment of wireless payment systems that everyone can use from their cell phone or other mobile device. Practically nobody will be handling cash in a decade or two, most people already pay for most of their purchases with credit/debit cards. I'm on the leading edge here but I have handled almost no cash for 5 years now, making all my purchases online or through cards.
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