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 Replies: 69 / Views: 8,687 |
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Moderator
 United States
188440 Posts |
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jbuck, arent their currently warehouses upon warehouses of surplus dollar coins and that is why they decided to make it nifc? Yes, but the proper solution would be to nix the one dollar note and circulate the dollar coins instead. |
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Pillar of the Community
United States
655 Posts |
It was during the Carter administration that the government was going to eliminate the $1 bill and replace it with a circulating $1 coin and a $2 bill. This was seen as a major cost savings but they never went through with it. Yeah we got the $1 coin and the $2 bill but the $1 bills just wouldn't go away due to public resistance.  They also tried to introduce the metric system into common use in the US but I understand the public was opposed to it too as it's way too hard to divide by ten.  |
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Moderator
United States
188440 Posts |
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This was seen as a major cost savings but they never went through with it. Yeah we got the $1 coin and the $2 bill but the $1 bills just wouldn't go away due to public resistance. We cannot have both. For the dollar coin to win, the dollar note has to be withdrawn from circulation. |
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Bedrock of the Community
13014 Posts |
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Not that anything would actually ever be done, but since the mint is having trouble making money making money (had to say it that way), let's solicit bids from outfits in the private sector to find someone who can do a better job!
Yes, I know the mint IS private. But aren't the heads of it appointed by D.C.? The red tape specialists have their hands in it somehow! Im all for getting the federal government out of as many industries as possible, however for money I want them making it. Theres very few things I want the government making or in charge of but I dont like the idea of our money dies floating around, if even a handful got out the damage of the inflated currency would far out weigh any cost savings. I do agree with you about pennies though, they probably are used more where the cost of living is lower. My experience around DC with pennies is they either sit in the take a penny trays, go into the 7-11 charity boxes or every now and then youll see someone paying with a bag full of them theyve saved up to get rid of them. |
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Bedrock of the Community
United States
10038 Posts |
What I meant about the private sector making the money was that it would only be one company - the dies etc. would only be at that company (like they are now). In other words, make the time proven methid of ompetition (for the job) take over. Then we would see how quickly the problems at the mint would dry up ... or a new firm would take their place.
I was alive during the Cartr-force-the-metric down our throats days. The mindset in America was a lot different back then (and I wish our mindset was still this way). We were being told that the rest of the world uses it so we should to. The overwhelming public outcry was, why? We have our own system and it works! Why should we have to follow everyone else? We are leaders, not followers. We feed the world, we give our lives for their freedom, and our way has proven itself better for everyone. So why start following the crowd?
BTW - I use the metric system whenever I am measuring /designing/building etc b/c it is faster than using fractional measurements, and pretty much think I can "think" in Celsius or Fahrenheit. But I agree with the above mentioned mindset as I came from a time when we could be proud to be Americans. And, since it is easy to use, let the people who deal internationally use it. But if the Americans don't want it - leave it alone! Its what makes us unique as a people.
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Valued Member
United States
232 Posts |
I'm fine with federal government making the coins. It might seem that if you changed it so it was a contract and companies bid on the contract that you would get competition. But I think in practice you would get all sorts of promises when bidding but one the bid is done you would not see any savings. The private mint would know that canceling the contract and re-bidding it would be so expensive and disruptive that it would never happen.
As for pennies, I have worked doing book sales etc, for our local PTA and we go through plenty of pennies there. I think if you are in retail you have a high demand for pennies.
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Pillar of the Community
Australia
674 Posts |
Australia stopped using one and Two Cent Pieces over 20 years ago. Any purchase is rounded up or down to the nearest five cents. Seems to work pretty well here.!  |
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Bedrock of the Community
13014 Posts |
Quote:
What I meant about the private sector making the money was that it would only be one company - the dies etc. would only be at that company (like they are now). In other words, make the time proven methid of ompetition (for the job) take over. Then we would see how quickly the problems at the mint would dry up ... or a new firm would take their place. Thats what I figured, but I'm opposed to that idea for money. I'm all for private business, but they are just that. I dont believe money or military technology should be held by private companies. It only takes one bad apple or an offer from a foreign government they cant say no too for those things to end up in the wrong hands. Most have little to no allegiance to the US other than they make money here and I do view money dies as a national security issue hence the Secret Service and US Mint Police Not to mention youd lose out on the profit from collector sales and the private companies could then charge whatever they wanted for it. Contracting isn't always cheaper since it has to go to the lowest bidder, little competition in bidding or just everyone wanting to make a substantial profit for doing so wouldnt save anything and may cost more |
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Bedrock of the Community
United States
17884 Posts |
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I know that this is not a popular opinion to hold - but who cares if it costs more that 1c to make the coin? The mint as a whole turns a profit, so none of your tax dollars go into making it - just a lower profit for the mint as whole. As a whole the mint will make a profit this year, but only by counting the profits on the numismatic sales. If you just look at the profits for striking coins for circulation the mint will probably be about $40 million in the red this year, compared to the roughly $300 million profit they made in 2011. The difference comes from stopping the dollar coin for circulation. In 2011 it's profits covered the losses on the cent and nickel and still provided a generous surplus. This year there are no profits from the dollar, and the losses from the cent and nickel will have to be covered by the profits from the dime and quarter. But the profits from the dime and quarter are less than the losses from the cent and nickel. So the profits from the numismatic sales will have to cover the rest of the losses. In 2011 numismatic sales had a profit of around $51 million. If they hadn't struck dollar coins in 2011 they would have had a $38 million dollar loss on the circulating coins. If we assume roughly the same this year, then we are looking at a final profit for the Mint of about $13 million for 2012. However the mintages of the cents and nickels are higher this year I believe, which means the losses will also be higher and that $13 million profit may just disappear completely and then the Mint will have to request funding out of the general fund. Instead of putting money into the Treasury, it will be taking it out. Quote:
Yes, I know the mint IS private. The mint is not private. It is self funding but it is wholly owned and controlled by the federal government. Did you know that the US government (and the country was supposed to) actually officially went metric back in 1866. And the Mint did go metric. Before that time specifications were stated in grains and fractions of an inch. After they were in grams and mm. Quote:
But I think in practice you would get all sorts of promises when bidding but one the bid is done you would not see any savings. See cost overruns by defense contractors that are regularly approved and items bid at a certain cost wind up costing two or three times the bid amount. Edited by Conder101
12/05/2012 09:46 am
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Moderator
United States
188440 Posts |
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Did you know that the US government (and the country was supposed to) actually officially went metric back in 1866. I am glad you brought this up because I was going to if you had not. |
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Pillar of the Community
United States
655 Posts |
I didn't know that the country was supposed to go to metric back in 1866. See what you can learn around here.  |
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Pillar of the Community
United States
2168 Posts |
I remember some traffic signs being both Miles and KM and the soda 2 liter bottles and half liter water. Gallons are there as well. Never took off and I'm not sure why never implemented
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New Member
United States
31 Posts |
I'd like to see the penny removed, but in the same token I want to see the US dollar replaced with a dollar coin.
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Valued Member
United States
449 Posts |
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Pillar of the Community
United States
613 Posts |
As far as the penny goes, seeing as how so many are "one-use" and then into a jar, why not run a public service campaign to "bring our your cents", give them all to charity or cash in at coinstar and reduce the demand for cent production, even as a one-shot. A one-year suspension of say 4 billion cents saves $40 million.
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Replies: 69 / Views: 8,687 |
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Posted 12/04/2012 12:30 pm
