Another Kill the Dollar Bill proposal

If they are going to kill George, they might as well follow the Canadian model and kill Tom, too.

http://news.yahoo.com/congress-looks-doing-away-1-bill-083418974--politics.html

Ya I saw that just a few months after they killed the prez dollar program because it wasn't cost effective. Are they going to kill the dollar bill? Not likely

I sure hope they don't get rid of the dollar bill.

I can't see getting to mark as many $5's as I do $1's...

I read a different article on this (that I can't find now) that said a $1 coin costs 30 cents to make and a $1 bill costs 5 cents. The coin lasts about 30 years and the bill lasts about 4.7 years. Here's the math for that:

30 / 4.7 * 5 = 31.9

30 year life span for the coin divided by the 4.7 year lifespan of a bill times the 5 cent cost of a bill = the cost of bills to print for 30 years to replace one coin.

So, in the next 30 years, presuming we switch to a coin for the dollar, the governent would save 1.9 cents for each coin minted. But that's just based on the cost of minting versus printing and the average life span of each. That doesn't include the cost of switching the whole system over to dollar coins and the very real possibility of the cost of the raw materials, aka metals, going up in cost.

My question is this: Does 1.9 cents saved per coin add up to $4.4 billion over the next 30 years?

Hey,

I was in Germany at the time the Euro got introduced.

Some countries had a 1,2 bill before EURO replaced this with a coin.

There is some real good money to make for some companies, other will have to spend a lot, but for sure it will not save much money for the government.
Most likely some member of some lobby try to push the change in US.

People will need wallets with a coin compartment, no way people will carry this amount of coins in the pocket
All businesses need new cash drawer
Any machine receiving cash will need new hardware and software to handle these new coins
All banks will have to change processes, new automatic counting machines etc

etc etc, only a few

I know there are some countries in Europe that try for a while now to get rid of the EURO coins and get paper money back, because its lots easier to handle, stack and stock.

my opinion:
I agree, it will not save any money for the government, it will cost, the real reason that some people try to get the coin out must be something else.

Maybe, lol, it will be easier for people to handle the big inflation coming soon, then a $5 bill will have the value of $1.And $1,$2 will be just some stupid change nobody really cares for ;-)

Markus

More likely some influential Senator has a nephew in the metal business.
That's how things get done in America.

I may be able to shed some light on this topic. Several years ago I did some research into the issue. According to the sources (citation needed) I looked at, the great advantage in coins is NOT the durability of the coin. The reason some people want coins to be used more is because of the national debt. Coins minted by the mint must be purchased by the Federal Reserve Bank at face value, whereas bills, printed by the Beaureau of Engraving and Printing. The FED buys the bills for cost, then lends the bills into circulation.