the US can save 5.5 billion dollars just by using a $1 coin

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Quhan
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the US can save 5.5 billion dollars just by using a $1 coin

Post by Quhan » Wed Mar 09, 2011 9:05 am

Washington has come down with a case of fiscal fever as the Obama administration proposes everything from spending freezes on domestic programs to selling off unused government property to bring the budget back in line. Now, one study argues that the government can save billions of dollars simply by making a change to the currency itself.

Earlier this month, the U.S. Government Accountability Office issued a formal proposal to the Treasury and Federal Reserve noting that if it eliminated the $1 bill and replaced it with the $1 coin, the country could save roughly $5.5 billion during the next 30 years. The reason, according to the agency's report, is that dollar bills have a shorter lifespan than dollar coins because they wear much faster, which in turn requires the government to spend more to print new bills.

The GAO estimates that phasing out dollar bills in favor of coins would require a four-year transition period, during which the government invests in the new currency, but following that, the government would save an expected $522 million each year from the change.

Unfortunately, as the GAO notes, there is one problem with the plan: When given a choice between dollar coins and dollar bills, Americans always choose bills.

"GAO has noted in past reports that efforts to increase the circulation and public acceptance of the $1 coin have not succeeded, in part, because the $1 note has remained in circulation," the agency wrote in its report. So if we are ever going to make the switch to dollar coins, as other countries like Canada have done, the GAO suggests the only way to do so is to phase dollar bills out of circulation altogether.

Before you start hoarding your dollar bills though, keep in mind that the GAO has made similar proposals four times during the past two decades, and obviously dollar bills are still in circulation. The only difference this time is that the overall climate in Washington is more geared toward budget cutbacks now, but given that it would take several years for the savings to kick in, this seems unlikely as well.

Still, we'd like to pose the question to readers. Would you be willing to eliminate dollar bills and switch to coins if it meant improving the country's balance sheet?
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chunkygorillas
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Re: the US can save 5.5 billion dollars just by using a $1 c

Post by chunkygorillas » Wed Mar 09, 2011 10:59 am

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Re: the US can save 5.5 billion dollars just by using a $1 c

Post by Ddreder » Wed Mar 09, 2011 2:45 pm

lol but i like pulling out $100 in ones and rolling around in it on my bed once in awhile... :mrgreen:

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Quhan
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Re: the US can save 5.5 billion dollars just by using a $1 c

Post by Quhan » Wed Mar 09, 2011 3:37 pm

dan i agree i think we should have a coin for : 1cent 2 cent 5 cent 10 cent 25 cent 50 cent $1 and 2$ to be honset just like the euro
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Re: the US can save 5.5 billion dollars just by using a $1 c

Post by Quhan » Thu Mar 10, 2011 10:03 am

i really think that the us could save money by switching to a euro basied system
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Re: the US can save 5.5 billion dollars just by using a $1 c

Post by Ddreder » Thu Mar 10, 2011 12:26 pm

damn communists..

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Re: the US can save 5.5 billion dollars just by using a $1 c

Post by rockybagel » Mon Aug 01, 2011 10:23 pm

the problem would be what would you call your coins. see we call 1 dollar = loonie 2 dollar= toonie

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Re: the US can save 5.5 billion dollars just by using a $1 c

Post by Quhan » Sat Sep 03, 2011 10:35 am

that is the best " problem " you can come up with?
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Re: the US can save 5.5 billion dollars just by using a $1 c

Post by rockybagel » Sun Oct 30, 2011 1:58 pm

yeah and may I say the free health care is also awesome

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Quhan
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Re: the US can save 5.5 billion dollars just by using a $1 c

Post by Quhan » Tue Apr 17, 2012 10:18 am

i don't think UH is that great...
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