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The argument for ending the dollar bill
A pile of euro coins sit on a display of one dollar U.S. notes. There is an ongoing argument among some politicians in America to get rid of the dollar bill and replace it with coins.
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United States Senator Tom Harkin of Iowa explains why we should abolish the dollar bill and replace it with coins.
Jeremy Hobson:I did a quick poll of the office this morning and we have 14 one-dollar bills among us -- and zero one-dollar coins. That's something Republican Senator John McCain and Democratic Senator Tom Harkin would like to change. They want to replace the dollar bill with a dollar coin, and they've introduced some legislation -- a bill if you will -- to do that. They say it would save around $200 million a year.
Senator Harkin joins us now from Washington. Good morning.
Tom Harkin: Good morning, Jeremy.
Hobson: Well, why do you want to get rid of the dollar bill and replace it with a coin?
Harkin: For a lot of reasons -- not the least of which: it will save us money. The GAO -- the Government Accountability Office -- has examined this six times: 1990, '93, '95, 2000, 2011 and 2012. And every time, they reach the same conclusion: basically, we should transition from the dollar bill and move to a dollar coin.
Hobson: And every time, Americans don't seem to be on board with that. They are given the opportunity to have dollar coins, but they don't want them.
Harkin: That's because we keep the dollar bill in circulation. If we didn't have the dollar bill in circulation, people would get used to the coins. Every modern economy in the world has made this switch.
Hobson: Senator, let me ask you this: when you go to Europe, or Canada, or some place that does use dollar coins, or whatever their currency is -- they have coin denominations -- do you get annoyed by having ten one dollar coins in your pocket?
Harkin: No. I took a vacation in Canada last summer, and quite frankly, I found having the two-dollar coin much better than going around with a lot of dollar bills. It didn't bother me a bit.
Hobson: Then why do you think there's so much opposition?
Harkin: Well, there's opposition from places where they make the paper for the dollar bill. There's opposition from the ink manufacturers that make the ink for the dollar bill, and on and on. I think the facts are on the side of moving to a dollar coin.
Hobson: So, what do you think's going to happen? When will you be able to get this bill through, do you think?
Harkin: We're going to continue to push on this; we have good bi-partisan support, as you know. But just to get the facts out to the public about how much money it will save us, and then it will make it much easier for large retail stores, vending machines, transit agencies -- all the arguments on the side of moving towards a coin. But then again, sometimes logical arguments don't always win in the United States Congress.
Hobson: Senator Tom Harkin is a Democrat of Iowa who has sponsored a bill that would replace the dollar bill, eventually, with dollar coins. Senator, thanks so much.
Harkin: Thank you very much, Jeremy.
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I am very much in support of going to the American dollar coin but the American dollar bill must be totally phased out of circulation for this to work. I leave near Canada and I can tell you that the Canadian dollar coin (loonie) has worked very well because the Canadian dollar bill was phased out completely. To me, this is a no-brainer...it just makes sense to save money! I suggest that once the American dollar coin replaces the American dollar bill, the USA must then focus on eliminating the one cent (penney) coin. That would help to lighten up the coin purse!
I think it is a bad idea to force a move to the dollar coin for the following reasons: Personally, I don't like carrying coins in my pocket. I can walk around with 50 one dollar bills and it doesn't add additional wear and tear on my pockets, but to walk around with 50 dollars in coins would add extra weight, be somewhat noisy and wear out the pockets in clothing a lot faster than now.
On the surface, it appears that a durable coin would be less expensive, but like most coins many of us receive when we actually get change back goes into a dish or a jar that sits, sometimes, for years on a dresser or in the corner of someone's home. These would, of necessity, need to be replaced because they are not circulating, how does that save money in the long run?
Say NO to forced use of dollar coins.
I like the dollar coins, I wish there was a $2 dollar coin, cash drawers don't have a slot for them, unless you give up the dollar bill slot, so I see why it is hard for cash draw operators to give them out in change, but if the dollar went away it wouldn't be to hard to adjust.
Why wage war on the lowly sawbuck when we're spending oodles making tons of worthless pennies every year? Australia got it right years ago - get rid of the penny and round up or down to a nickel. It's a no-brainer...so I guess it's no wonder the government hasn't done it.
I like dollar coins because they are easy and quick to put in the coin hopper for the bus. Rather than carrying and entering six quarters, I enter one dollar coin and two quarters. Ever try to put a dollar bill into a vending machine and have it spit out? Coins work much better--if the machine accepts them. I don't mistake dollar coins for quarters. They are slightly thicker and heavier and have a different color. I am surprised at how many people seem to dislike them. But then, I am surprised at how many people don't take public transportation and prefer to spend $100 at the gas pump every week.
I agree that the dollar coins are too close to quarters. I have gotten dollar coins in change from stamp machines at the post office. And when I look for them they are gone, I spend them for quarters.
I recall hearing an official from the Mint saying that the coins were quarter sized because somehow that was better for vending machines. But what good is that if no one uses the coins? I suggest copying the British pound coin: smaller, thicker, & with flat sides. But it isn't that hard, have some engineers calculate how different dimes, nickels, and quarters are from each other, and then make a coin thats equally different from each of them.
Jeremy:
Sen. Harkin somehow failed to mention that switching to a $1 coin will cost American taxpayers $530 million over the first 10 years. His supposed savings come after 30 years, and the GAO says the total cost will never be recovered.
So, where would lots of that $530 million go? Sen. Harkin also forgot to mention his own "constituent interest:" PMX Industries, a South Korean company that makes the blanks for $1 coins. Harkin has been very successful in bringing home the bacon for this company.
This and many other things can be learned when you do just the smallest bit of research.
This a moot problem. As usual the U.S. government is wasting time and money addressing a non issue instead of solving our real economic problems. The "Bread and Circuses"method of governing as was used in Classical Rome.
With the increasing use of "digital money" there will be less and less need for "hard" currency and by default save the government money. Mr. Harkin fails to mention the misguided "Presidential $1 Coin Program" that Congress has already wasted millions of dollars on. This program was recently ended because the US Government has generated mounds of unused $1 coins already. (http://en.wikipedia.org/wiki/Presidential_$1_Coin_Program)
I can't remember the last time I used a coin of any type to pay for anything.
Another issue to consider is bachelor parties and the real need for this form of currency. Dollar coins would make it difficult to make a donation to your favorite exotic dancer while celebrating your last days as a free man.
Crazy! I hate carrying the coins I get now. Unless you have deep pockets they can fall out. I am all for making our government more efficient but this one is silly - and likely is based more on the fact that we have billions of unused dollar coins sitting around rather than the change benefiting anyone!
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