Friday, March 11, 2011
Eliminate $1 bills to save the country billions?
This article suggests that the United States could save $5.5 billion during the next 30 years if we switched from $1 bills to $1 coins. The US Government Accountability Office estimates that this change in phasing out the $1 bill would require a four year transition period, but after that, the government would save approximately $522 million each year from this change. This doesn't seem like a lot of money considering our trillion dollar deficits, but it would definitely help at least a little bit to balance the budget. Personally, I used the 1 and 2 Euro coins all the time when I was studying in Spain, and they didn't really bother me at all. What are your thoughts on this proposal? Would you be willing to switch from the $1 bill to the $1 coin to help improve the country's budget?
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In Australia, we had $1 and $2 coins as well and I preferred them to the dollar bill. Every little bit counts especially when balancing the budget and unlike cutting spending in the form of programs, this doesn't seem to hurt as many people. My question is: Why stop at dollars? Why don't we eliminate the penny? They cost more to produce than what the coin is actually worth. Many other countries, like Australia do not even have a one cent coin legal tender.
ReplyDeleteEcuador is all about the Sacagawa $1 coin. American's can get over it and coin it up. A transition to elimination of the bill helps reduce debt.
ReplyDeleteI think the hassle might not be worth switching over to the coins. Although it would save money like you said, it would barely put a dent into the deficit. I also heard a lot about getting rid of pennies. Does anyone know how large of an impact that would have on the deficit? I would be interesting to hear what that figure is.
ReplyDeleteGetting rid of the pennies makes more sense but even switching from bills to coins is not too bad. I remember when this happened in Pakistan and it really is not much of a hassle. It's all abt efficiency and every step towards that curve helps!
ReplyDeletePs: If this ever does happen remember to keep a few bills aside just for memories sake!
Ecua-coins were pretty baller! But on topic, It's not really a "sacrifice" if minting coins is more cost efficient than printing $1 bills. By all means go for it. I don't see any great harm if we still have dollars to account for transactions, be it in a coin form or dollar form. It'll save money, people won't have to sacrifice much (if anything really), and everyone benefits.
ReplyDeleteIn Botswana they also had $1 pula coins. I didn't mind them at all, and I think it is ridiculous for someone to argue that change is such an inconvenience that they wouldn't want to switch from bills to coins in order to save approximately $522 million annually. I would agree with JJ that getting rid of pennies makes more sense, but if $1 coins can save us even more money why not be more efficient? I'm all for getting rid of both pennies and dollar bills. This is completely off topic, but I'm gonna say it anyways... If you're that much of a player and fear that you will no longer be able to "make it rain" in the club, step your game up and throw out $5 bills.
ReplyDeleteYes, every little bit counts. I always wondered if bills or coins were more expensive to create, and I guess that bills are. There would have to be a huge increase in buying up minerals to create the $1 or $2 coins and would drastically reduce these materials in our world, so the government would have to be careful about that, but if some of our deficit would be cut, then I am all for it. Follow those European countries who have already done that.
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