KTAR News: Arizona Sen. John McCain reintroduces bill to replace dollar bill with dollar coin
Goldbully
Posts: 17,948 ✭✭✭✭✭
Will it work this time?????
By Arren Kimbel-Sannit/Cronkite News | March 31, 2017
WASHINGTON – Even small change can make a difference in the fight against government spending.
That’s why Republican Sens. John McCain of Arizona and Mike Enzi of Wyoming reintroduced legislation Wednesday to phase out the dollar bill and replace it with a dollar coin, part of a package of currency reforms that could save at least $16 billion over 30 years.
The Currency Optimization, Innovation, and National Savings – or COINS – Act, would also suspend production of pennies and change the composition of nickels to cut costs.
“With our country facing $20 trillion in debt, Congress must act to protect the American taxpayer,” McCain said in a prepared statement. “By reforming and modernizing America’s outdated currency system, this commonsense bill would bring about billions in savings without raising taxes.”
Commonsense, but not an easy sell in Washington. The bill was first proposed by then-Rep. Jim Kolbe of Arizona in 1991. Similar bills have been introduced regularly since then – this is McCain’s third attempt.
The legislation cites 10 Government Accountability Office reports from the last two decades, all of which found benefits fromswitching dollar bills to dollar coins.
The most recent GAO report, coupled with a March report by two former Senate economists, is where the estimate of $16 billion in savings comes from, an estimate that advocates say is conservative.
The biggest savings would come from the longevity of coins compared to paper. The March report, prepared for the Dollar Coin Alliance, says that bills last on average around five years, while coins can extend past 30.
“Coins last a lot longer than paper,” said Aaron Klein, former Democratic chief economist for the Senate Banking Committee. “One coin costs around 18 cents. Reprinting that dollar note 7 times over 31 years costs 62 cents. You sell a dollar in 30 years for one dollar, but the cost of producing it will have gone up.”
The report and the bill also point out that the penny and nickel both cost more to produce than they’re worth. So the bill proposes suspending production of the penny for 10 years and changing the composition of the nickel to 80 percent copper, 20 percent nickel.
Klein estimates that changing nickel composition would save over a half-billion dollars in 30 years, while suspending production of pennies – two-thirds of which sit out of circulation and in jars, he said – could save $1 billion in 10 years.
Other countries have phased out their version of the penny and had to round prices as a result, but the McCain-Enzi bill would not go that far. The penny would remain in circulation, there would just be a pause in minting them.
“This does not mean there is rounding – there are billions of pennies we could go swimming in, like Scrooge McDuck,” Klein said.
Currency reform enjoys bipartisan support, according to a survey by Hart Research Associates and Public Opinion Strategies done on behalf of the Dollar Coin Alliance.
The late-January survey of 1,001 voters showed that 74 percent of Republicans and 68 percent of Democrats would favor replacing the dollar bill with a dollar coin, and 77 percent would support suspending penny production.
So why is the bill not yet law, 26 years after Kolbe first introduced it?
“I think there’s a number of reasons,” Kolbe said. “There’s the inertia factor. It’s hard to get people to change their currency. There are special interests involved – those who manufacture the paper that is used in the currency, those that manufacture the metal slugs used for pennies – that resist this kind of change.”
But Kolbe is optimistic that now is the time for this legislation to go through.
“The polls show clearly that when Americans are confronted with the facts about the savings that are there, then they change their mind,” he said Wednesday. “No congressperson should hesitate to go back to their constituency and say, ‘I just voted to save us $16 billion, and it’s not going to be an inconvenience to anybody, it will be simple.’”
https://ktar.com/story/1512925/arizona-sen-john-mccain-reintroduces-bill-replace-dollar-bill-coin/
Comments
What did I say. Under Trump the penny and nickel will be killed and we'll possibly change to dollar coins. Close enough for now lol. I think it has a shot!
For the umpteenth time...the U.S. Mint does not make pennies...they make cents!
This would be so easy to do...except for the politician(s) who represent the state that makes the sheets for the $1 bills the zinc sheets and nickel sheets. The dollar coins are sitting in vaults, ready to be used.
BST transactions: dbldie55, jayPem, 78saen, UltraHighRelief, nibanny, liefgold, FallGuy, lkeigwin, mbogoman, Sandman70gt, keets, joeykoins, ianrussell (@GC), EagleEye, ThePennyLady, GRANDAM, Ilikecolor, Gluggo, okiedude, Voyageur, LJenkins11, fastfreddie, ms70, pursuitofliberty, ZoidMeister,Coin Finder, GotTheBug, edwardjulio, Coinnmore, Nickpatton, Namvet69,...
Well then...the Mint should change the wrappers.
Lance.
Nice name: the COINS (Currency Optimization, Innovation, and National Savings) Act!
I wonder if this could be combined with putting Liberty back on circulating coins.
Now that we are going to Mars, having an astronaut dollar, as proposed by @dcarr, would be nice as well.
Edit out.
Mischaracterisation of funds!
That particular roll wrapper is made by String & sons. That would their responsibility to "change" it....wouldn't it?
BST transactions: dbldie55, jayPem, 78saen, UltraHighRelief, nibanny, liefgold, FallGuy, lkeigwin, mbogoman, Sandman70gt, keets, joeykoins, ianrussell (@GC), EagleEye, ThePennyLady, GRANDAM, Ilikecolor, Gluggo, okiedude, Voyageur, LJenkins11, fastfreddie, ms70, pursuitofliberty, ZoidMeister,Coin Finder, GotTheBug, edwardjulio, Coinnmore, Nickpatton, Namvet69,...
ONLY if the Dollar coin is bi-metalic, ringed design. Almost every major country does one. What are we waiting for?
What's worse;
Carrying 4 dollar bills in your wallet/pocket or having 4 dollar coins in your wallet/pocket after receiving change? Does it make a difference to you?
There are $2 bills available. -or- this is where the bi-metallic coin could come into play.
BST transactions: dbldie55, jayPem, 78saen, UltraHighRelief, nibanny, liefgold, FallGuy, lkeigwin, mbogoman, Sandman70gt, keets, joeykoins, ianrussell (@GC), EagleEye, ThePennyLady, GRANDAM, Ilikecolor, Gluggo, okiedude, Voyageur, LJenkins11, fastfreddie, ms70, pursuitofliberty, ZoidMeister,Coin Finder, GotTheBug, edwardjulio, Coinnmore, Nickpatton, Namvet69,...
A single coin worth $4 would be the best.
In the UK they have had £2 coins for a while. Right now, this is worth $2.5 but earlier, it was worth $4 so you could have a single coin for $4.
$1 and $2 coins is a good idea. One H A S to be ringed bi-matalic. Dan Carr's design would be a great one.
Like the Beatles sang it in the day, "All together Now".
Look for an all digital money system in the future. C'mon, you know it's coming on the heels of the recent selling of your internet search info vote. Digital money PAC will win out.
Coins, instead of a paper bill? Proposed by McCain? Crazy. McCain must have the metal coin lobby.
Will not ever happen.
Will it work this time??
No.
The philosophy of the bill is ALL wrong with statements such as: "“I think there’s a number of reasons,” Kolbe said. “There’s the inertia factor. It’s hard to get people to change their currency."
People will never change as change must be implemented. Besides, it's not the publics decision on what form or currency the government uses for daily transactions. As long as it's spendable.
The name is LEE!
It shouldn't make a difference to anybody. A dollar today buys less than what a quarter would in 1970. If a coin was good enough back then for the same buying power, why not use a coin today? Four quarters in your pocket was not a problem then, why should four coins be a problem today?
mbogoman
https://pcgs.com/setregistry/collectors-showcase/classic-issues-colonials-through-1964/zambezi-collection-trade-dollars/7345Asesabi Lutho
We need to save $16 billion THIS YEAR, not over the course of 30 years. The cost of the production is not as important as providing citizens with what they want, which just may be keeping things as they are. I'll bet most of the mint's costs aren't so much the material as it is everything else surrounding the production.
Great transactions with oih82w8, JasonGaming, Moose1913.
"Will not ever happen." That's what they said about Trump getting elected
Anything's possible.
Fixed it for you
Someone should tell this to the US Mint:
https://www.usmint.gov/mint_programs/circulatingCoins/index7757.html?action=CircPenny
Whatever you are, be a good one. ---- Abraham Lincoln
But ya know....even though the mint may refer to the cents common ( but incorrect) name as a penny....can you show an example, produced by the real U.S. mint, not some colonial pre-revolution pretender......with the word "Penny" on it?
There is only one Kleenex® Brand Tissue but every "facial tissue" is commonly called Kleenex®. Kimberly-Clark would get their noses out of joint if another company called their tissues Kleenex. But no one would dare try. Do we still call all tissues Kleenex? Yes. The sun still comes up every morning. Kimberly-Clark is happy too.
Some of us may react as thought fingernails just went across a black board every time we hear cents described as pennies. But we are overwhelmingly out numbered and slightly nervous to point out the glaring ignorance of the speaker of that blasphemous word. We might even provoke contact between our proboscis and the speakers knuckles if we press to hard. So we cringe internally for a moment. A little shudder goes through us. And we keep our big mouths shut.
Getting rid of the paper dollar and replacing it with the coin has made sense for years. Europe and Canada seem to have been fine with it.
Also: get rid of the cent (nee: penny) and nickel while you're at it, and introduce a $5 coin.
Here's a warning parable for coin collectors...
That right there is reason enough for us not to do it.
Great transactions with oih82w8, JasonGaming, Moose1913.
Let's first get rid of the third decimal place on the price of a gallon of gas.
No Way Out: Stimulus and Money Printing Are the Only Path Left
I hope they make 1 and 2 dollar coins tbh.
Eliminating the cent and dollar bill, makes sense economically and logically... which is fundamentally why congress has not done it.... Politics comes before the good of the people...whom they were elected by and to serve..... Now, only their personal wealth means anything.... Cheers, RickO
This kinda makes me giggle since it's the same old story.
"People" do not dictate what coins are used in circulation.
"MERCHANTS" make that dictation via coin orders thru a Federal Reserve Affiliated bank which is why there is close to $2,000,000,000 in dollar coins languishing in Federal Reserve Vaults.
"People" will accept whatever change is given them as long as it spends and "People" will adjust the change they carry to whatever is most comfortable. (i.e. turning in 10 ones for a $10 bill, 16 quarters that they were going to use at the car wash for 4 one dollar denomination, 4 $5 for a $20, etc.)
This "dollar coin" problem has ALWAYS been a problem as long as there was a paper counterpart due to the costs associated with shipping and weight. 1000 paper bills weighs much less than 1,000 coins. The Treasury Department has plenty of seigniorage on each dollar coin to address the costs associated with shipping dollar coins to/from merchants. Heck, at one time, (before the greedy trolls took over) the US Mint was shipping out $250 boxes of Presidential Dollars at NO CHARGE! You could order as many as you wanted.
So, until the paper bill is eliminated, a coin counterpart will NEVER, EVER circulate because merchants will ALWAYS opt for ordering the cheaper of the two (from a shipping standpoint).
The public has no say in the matter. None.
My experience has been that, each time I show up to pay for something with one dollar coins, the people around me are amazed at the coins and wonder where I got them.
Take away the paper dollar and people will embrace the dollar coin. Heck, we'd probably have dollar coin shortages cause folks would be sticking them away as collectible.
The name is LEE!
John McCain's mother, Roberta McCain turned 105 back in February. And people complain he is past his prime. Hmmm
Rather than address the underlying problem of inflation and exploding national debt, politicians like John McCain want to just eliminate the evidence of the financial establishment's misdeeds.
No Way Out: Stimulus and Money Printing Are the Only Path Left
IF we drop the paper dollar, what am I gonna use at the strip joints?
“In matters of style, swim with the current; in matters of principle, stand like a rock." - Thomas Jefferson
My digital cameo album 1950-64 Cameos - take a look!
Throwing coins may not be appreciated.....bruises
Saving $16 billion trumps any negatives. That money can be used a lot of other ways.
Not only have they proposed discontinuing the production of the cent, another bill has been introduced which would require that coins from the cent through the quarter dollar be made from steel, and only steel originating in the USA. The bill is called H.R. 2067 The Cents and Sensibility Act.
https://www.congress.gov/bill/115th-congress/house-bill/2067/text?q={"search":["HR+2067"]}&r=1
I'll keep my opinions and comments to myself as I value the privilege to participate on these forums :-)
Happy, humble, honored and proud recipient of the “You Suck” award 10/22/2014
This would be more disruptive to the vending industry than some proposals. I can see the appeal to steel producers.
Ditto.
Great transactions with oih82w8, JasonGaming, Moose1913.
Make coins great again!
We need to save 16 billion this year and every year for the next 30+. It always baffles me how it always seems to be all or nothing when it comes to saving money on gov spending. Chip away enough a billion here a million there and it will eventually make a difference.
Oh and people will spend whatever it is the government tells them will buy that iPhone or latte.
Not to get too political but a whole bunch of people don't want to buy health insurance but they do because if they don't they get taxed.
My Ebay Store
derryb said: Rather than address the underlying problem of inflation and exploding national debt, politicians like John McCain want to just eliminate the evidence of the financial establishment's misdeeds.
Eliminating the cent and the nickel will cause an immediate re-pricing of every small item in the economy, so I would expect a jump-start on any coming price increases. It also makes the smallest currency increment to be a dime - go figure what the end result of that change will be.
Eliminating paper dollars in favor of dollar coins would seem to make purchases under $10 much more cumbersome unless some larger denomination coins are introduced as well, which I doubt would happen - (see derryb's note above.)
I think it's part of the war on cash.
I knew it would happen.
It could be interesting putting coin in slot
The 'greenback' has been the world standard for so long now. It is recognizable in most any country. It would be such a mistake to eliminate it.
My children, all in their 20's and 30's, when questioned about this, asked what is a coin?
Surprising how other countries make the change (i.e. Canada) and yet America seems unable - actually unwilling - to do it. Cheers, RickO
And not only have other countries found success with eliminating small denomination paper bills dollarcoinalliance.org/facts-about-the-dollar-coin/ they have also gone Bi-Metallic to make these coins stand out.
https://en.wikipedia.org/wiki/Bi-metallic_coin
We are one of the few NOT using Bi-Metallic.
It would be great if a $10 coin was also minted, the size of a half dollar, with a new design of Miss Liberty for circulation.
A $100 circulating silver coin would also be great to have, but I doubt if this would ever happen.
Circulating $100 coin? Maybe.
Silver circulating coin? No way
We could always go back to the denominations used for gold way back when-$1, $2.50, $5, and $10. Three different combinations of bi-metallic coins might work. I think it would be a great idea to eliminate both the cent and the paper dollar. And maybe the $5 and $10 paper currency, too.
Not necessarily. To stop minting new pennies and nickels does NOT mean all the existing ones disappear. (there are plenty to last a long, long time, if we Americans would all simply spend down our change containers regularly) and there would be no need to "change" anything about how minor coins are used.
And we hear the "repricing and rounding-up" arguments all the time, again, IMO not the case. Prices of individual goods and services could stay exactly the same, and only the TOTAL would be rounded to the nearest (dime, for example)
Even now, the tax is rounded to the nearest whole cent, and in many small cash transactions, for instance at convenience stores, there's a tray of pennies, nickels, and sometimes even dimes and the occasional quarter in there to help out.
Liberty: Parent of Science & Industry