Tuesday, August 17, 2010

Would you use a $1 coin?

I run across some oddball stuff occasionally and today it is the Coalition for the $1 Coin. This is a group that is pushing to get rid of paper dollars, replacing them with coins exclusively. The claim is that it would save money and be better for the environment. The group's members include the National Bulk Vendors Association and PMX Industries, who makes the coin blanks. The vendors association would save money by not having to swap out the paper dollars. The vendors also claim that they spend a billion dollars a year just fixing machines with jammed dollar bills in them. How many people would be out of work if they couldn't be repairing vending machines? PMX Industries would have work. Note that PMX is owned by Poongsan, a giant Korean conglomerate supplying copper products around the globe, including ammunition. Just what we need, more of our money going to a foreign company. The General Accounting Office (GAO) claims that the US government would save $522 million a year because the coins are more durable. Their claim is that it cost 3 cents to make a paper bill that lasts 21 months versus 16 cents for a coin that lasts 30 years. They supposedly would have to make 17 paper bills to match the coin's lifespan. Drag out your billfold. Check out the dates on your dollar bills. I did. I had 3 bills, 2 dated 2006 and one dated 2003. That's more than 21 months and they aren't worn out yet. The "green" aspect probably can't be verified. I don't know which is worse on the environment, copper mining or paper production. They are both recyclable. The fact that this idea is being pushed by private industry is no surprise. The government's involvement is tainted by the fact that they allow influence from private business to sway their decisions. Just the physical aspect of a dollar coin is a problem. They weigh more than a paper dollar. Shipping costs would be higher. Americans haven't had to carry yet another coin in their pocket. We already have 4 normally used coins, not counting half dollars which nobody uses. If you ever wandered around with a bunch of pesos in your pocket, you would know what I mean. Dope dealers would have to hire extra help, just to carry their cash around. The US government savings of $522 million works out to about $1.74 to me. I would rather pay that to not have a big fat pocket full of coins.

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