Which costs more to use, the $1 bill or penny?

notlogical

I've read where people want to get rid of the cent but which costs the taxpayers more to make and use? The cent or the $1 bill? I don't know the answer, that's why I'm asking.

If it is the dollar bill, why don't people talk about getting rid of it like they do the penny?

WinPitcher

I think coins cost more to make and deliver, plus the seigniorage on the dollar is more.



Steve


edited to add: correct spelling of Seigniorage.

ain't copy and paste a wonderful thing?

CertifiedGoldCoins

The way things are going, they won't need to print dollar bills or mint dollar coins, except maybe in aluminum.

gecko109

<< <i>I've read where people want to get rid of the cent but which costs the taxpayers more to make and use? The cent or the $1 bill? I don't know the answer, that's why I'm asking.

If it is the dollar bill, why don't people talk about getting rid of it like they do the penny? >>




I believe it costs around 6 cents to make a dollar bill, and i've read that the bill lasts on average 18-24 months. It costs the mint 1.1 cent to make a cent, so its actually a short term loss, however, a coin's lifespan is much longer, I remember reading about 30 years on average. So if we crunch numbers, it costs taxpayers $1.10 for a dollar worth of cents that will last for 30 years, which equates to just under 4 cents per year. It costs taxpayers 6 cents to produce a dollar, which will last just 2 years (thus has to be remade 15 times in those 30 years) for a total cost of 90 cents, or just about 3 cents per year. The conclusion is that the dollar is actually cheaper than the cent, and furthermore, zinc/copper prices are more likely to rise much faster than cotton and ink.

BillJones

I think in aggregate the cent costs more. Most cents don’t circulate that much, and when they are lost, they often end up dissolving now that they are made of zinc. There are lots of cents that just sit in bottles and boxes and never get used.

Dollars bills are spent and get a lot of use. Yes a dollar bill only lasts for 18 months on average, but it sees a lot of circulation during that time.

TwoSides2aCoin

I wear out more jeans looking for tax dollars than I wear out wallets looking for bills.
I'd say the penny costs a little more in the long run and this is CHANGE you can count on.

itsnotjustme

There is no seiniorage on notes, coins only, is my understanding.

When notes are produced, unless the government is intentionally expanding the amount out there, an equal amount must be destroyed.

Both the cent and the $1 FRN have outlived their usefulness.

LindeDad

I think it would be better to think of the amount of savings dollar coins would bring to the money pool if paper bills were discontinued.

ricko

I would prefer they get rid of the bills and keep the cents. Using dollar coins makes a lot of sense. However, they cannot be turned out as fast as the AHIC is demanding they print money right now. Printing money, with no backing, is destroying our economy. Cheers, RickO