Congress Considering Replacing The Dollar Bill With Dollar Coins, Could Save Taxpayers $4.4 Billion

Congress Considering Replacing The Dollar Bill With Dollar Coins, Could Save Taxpayers $4.4 Billion
World
Like Us On Facebook
Like Us On Facebook

Congress is kicking around the idea of replacing the dollar bill with dollar coins, as federal auditors have determined that the move could save taxpayers roughly $4.4 billion over the next 30 years.

Experts say that while it would be expensive to replace machines, the fact that coins can stay in circulation for up to 30 years, while paper bills only have four to five year lifespans, outweigh the initial costs.

‘We’ve never bitten the bullet to remove the $1 bill as every other Western economy has done,’ said former director of the U.S. Mint Philip Diehl said. ‘If you did, it would have the same success the Canadians have had.’

Supporters of the idea frequently point our northern neighbor as an example of switchover than went well. Canada introduced its now popular $1 piece, affectionately nicknamed the ‘Loonie,’ and found it so popular that the country also went to a $2 coin called the ‘Toonie.’

‘I don’t know anyone who would go back to the $1 and $2 bills,’ Rep. Bill Huizenga of Michigan said at a House subcommittee exploring ways to change how money is produced in this country.

Meanwhile, vending machine operators have long championed the use of $1 coins because they don’t jam the machines, cutting down on repair costs and lost sales.

Still, at a time when cost-cutting measures seem to be something of a necessity, few Americans seem to be behind the idea of replacing lightweight paper bills with heavier coins.

In the past five years, the U.S. Mint has produced 2.4 billion Presidential $1 coins, but most are stored by the Federal Reserve, and production was suspended about a year ago.

Strong opposition to the change has been seen in Congress as well. Rep. Lacy Clay of Missouri, another member of the subcommittee, said men don’t like carrying a bunch of coins around in their pocket or in their suits. And Rep. Carolyn Maloney of New York said that $1 coins have proved too hard to distinguish from quarters.

‘If the people don’t want it and they don’t want to use it,’ she said, ‘why in the world are we even talking about changing it?’

But the Government Accountability Office’s Lorelai St. James say the benefits of the switchover are hard to argue against and that they would only come through if the dollar bill is completely eliminated and the public educated about the benefits of the switch.

‘We continue to believe that replacing the note with a coin is likely to provide a financial benefit to the government,’ she said.

It seems, however, that the more likely option is that production methods of existing coins will be changed. As it stands, it take more than 2 cents to make a penny and more than 11 cents to make a nickel, thanks to rising prices of copper and nickel.

The subcommittee also heard suggestions to replace these more expensive metals with a combination of steel, aluminum and zinc, which would cost considerably less. Rep. Steve Stivers of Ohio put that number at nearly $200 million a year.

Congress approved a similar measure nearly 50 years when they took precious silver out of dimes and quarters as well as cut down production of 50-cent coins by half.

The U.S. Mint is expected to present a report in mid-December that will detail the results of nearly 18 months of work exploring a variety of new metal compositions and evaluating test coins for attributes as hardness, resistance to wear, availability of raw materials and costs.

Richard Peterson, the Mint’s acting director, noted that ‘several promising alternatives’ were found.

Jordan Shepherd | Elite.

Share Tweet
React
Like Us On Facebook
Like Us On Facebook

Julian Sonny

From the sandy beaches of Hawaii, to the streets of New York: Julian has seen it all. His lifetime of travels has given him a broad scope of knowledge and an eclectic taste unlike any other in the tri-state area. Julian has often been compared to cultural icon, The Rock, because of his unequivocal work ethic and warrior-like stature.

More In World

World Emily Arata

Hero 13-Year-Old Boy Saves Mom From Abusive Boyfriend By Stabbing Him

A 13-year-old boy from Phoenix reportedly saved his mother’s life after her abusive boyfriend attacked. Darvon reached for a kitchen knife after his mother’s long distance boyfriend, Keith Childress, 26, began beating her while threatening the boy and his 15-year-old sister. He stabbed Childress repeatedly, acting on his instincts. He said, It was my instincts, I […]

World Sean Levinson

Virgin Galactic Spaceship Crashes In Desert During Test Flight (Photos)

A rocket plane made by Richard Branson’s Virgin Galactic crashed in the Mojave Desert during a test flight on Friday morning. The firm’s Twitter account said that SpaceShipTwo had experienced an “in-flight anomaly” as it conducted its 55th test, RT reports. One pilot is dead with the other seriously injured, both of whom had been equipped […]

World Sean Levinson

Child Bride Who ‘Killed Husband To Escape Marriage’ May Get Death Penalty

A 14-year-old Nigerian girl may be put to death if found guilty of fatally poisoning her 35-year-old husband shortly after their wedding. Wasila Tasi’u married Umar Sani last April in accordance with Nigeria’s marriage act, which states that anyone under 21 can be married as long as his or her parents consent. Wasila is from an impoverished, conservative […]

World Emily Arata

Father Finds Perfect Halloween Solution For Son Who Can’t Have Candy

Halloween isn’t exclusively about rotting haunted houses and ghouls. There’s a sweet side to the holiday, as shown by this father’s letter that dates back a couple years. The note, delivered to the man’s neighbors, explains that 8-year-old Fletcher has epilepsy. To prevent seizures, he must follow a strict diet that excludes candy. So little […]

World Sean Levinson

The Number Of Billionaires Has Doubled Since The Financial Crisis

There are more than twice the number of billionaires in existence today than during the 2009 financial crisis, a new report from a global charity has found. Oxfam’s statistics aim to show that inequality continues to grow, with the very rich gaining even more money while the very poor struggle to find available means to survive. Oxfam’s […]

Also On Elite

World

A Real Hero: Guy Crawls Through Tunnel Of Human Sh*t To Save Puppies (Video)

This is at once the most disgusting and the most heartwarming news you’ll hear about this week — probably this year, actually — and as contradictory as that may seem, it’s the truth. So, what happened? A man in Thailand crawled through a tunnel of sh*t to save four puppies. Literal sh*t. Of the human […]

World

Biomedical Student Gets His Walter White On, Cooks And Sells Molly

A routine traffic stop in Orlando, FL, led to police busting the drug ring of a collegiate Walter White wannabe. Max Waters, a 21-year-old University of Central Florida biomedical student, was arrested after police raided his college home. There, they discovered 400 grams of Ecstasy as well as cannabis wax, LSD, psychedelic mushrooms and marijuana. […]

World

Texas Teacher Allegedly Had Sex With Her Student ‘All Summer Long’

It’s beginning to seem like every state in the country has at least one illegal teacher-student hookup. Former cheer coach and biology teacher Ashley Zehnder, 24, faces a felony charge for an alleged months-long sexual relationship with a 17-year-old male squad member. The case surfaced three weeks ago when Zehnder approached Pasadena High School’s assistant principal, telling him students […]

Strategy

3 Things You Need To Know Before Crowdfunding Your Startup

More and more startups and entrepreneurs are turning to crowdfunding these days and not just equity crowdfunding (i.e. Wefunder), but rather, perk crowdfunding (i.e. Kickstarter and Indiegogo). Crowdfunding can be a great tool for startups and provides much more than just funds (e.g. market validation, a loyal customer base, early adopter market, etc.), especially for younger, […]

Humor

This Is What You’re Really Thinking When You First Run Into Your Ex (Video)

Nobody likes running into an ex. It’s awkward. You’re not sure what to say. You’re not sure how to navigate the situation. And you desperately want to know what your former flame is thinking. Well, this video by Ali Vingiano gets where you’re coming from, homies. It shows a pair of exes running into each […]