Replace the Dollar Bill with the Dollar Coin

A lot of people don’t like this idea but it would save the United States billions.  How?  Glad you asked.

First lets take a look at the 1 Dollar Bill:

  • Average Life Span of 5 years.
  • Costs $0.06 to print each 1 dollar bill.
  • Makes up 45% of all notes printed.
  • Over 90% of the 1 dollar bills printed annually are just to replace damaged bills that have been taken out of circulation.
  • The USBEP prints about 2 billion 1 dollar bills every year.
  • Total in Circulation 8.7 billion.

Now Lets look at the Dollar Coin:

  • The Average Life Span of the most heavily circulated US Coin (The Quarter) is 35 Years.
  • It Costs $0.10 to mint each dollar coin
  • 1.4 Billion currently warehoused that have not yet been circulated.

A lot of people have said that this idea won’t actually save money because of the minting cost to replace every dollar currently in circulation.  What they forget about is if we went 5 years without printing more dollar bills, while at the same time replacing damaged bills with warehoused dollar coins  we would only need to mint 7.3 billion new dollar coins in the next 5 years at a cost of $730 million.  This is because of the natural lifespan of the dollar bill being 5 years.  The Dollar will remove itself from circulation because of normal wear and tear so the government does not need to engage in a buy back or confiscation.   Add to that a lot of people that will hold onto their 1 dollar bills as collectibles, as well as the revenue that would be generated  by the USBEP when they put together some sort of “End of the Dollar Bill” collectible package that they charge a premium for.

Here is where the saving really kicks in though.

We already covered the fact the USBEP prints about 2 billion 1 dollar bills per year.. and that 90+% of those are to replace damaged bills.  Using their own math, The USBEP print about 1.8 billion per year to replace damaged 1 dollar bills because of their 5 year life span.  Since the coins have a 35 year life span we would only need to mint an average of 260 million dollar coins per year to keep up with replacing damaged dollar coins.

  • The cost to print 1.8 billion dollar bills = $108,000,000
  • The cost to mint 260 million dollar coins = $26,000,000

So we would see an annual savings of of $82,000,000 just in replacement costs.  Of course there is the initial cost of minting 7.3 billion coins, but that gets spread across 5 years.. so the Annual Cost for those 5 years will be  146 million dollars.  Which we will fully recoup in savings 10 years later.

There is also the matter of what gets done with the old damaged currency.  While Dollar Bills have to be shredded and send to a landfill never to be used again, Dollar Coins can be melted down and minted into coins again which saves on costs as well.

A recent GAO report came out and said that 30 years from the beginning of implementation the total savings would be $4.4 BILLION.


Replace Dollar Bill with Dollar Coin

TO: THE PRESIDENT, MEMBERS OF CONGRESS, et al.:

I call upon Congress and the President to get rid of the Paper Dollar and Replace it with the Dollar coin in General Circulation.
For the reason outlined at:
http://gamechangerpac.com/dollar-bill-coin/

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