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 Replies: 24 / Views: 3,258 |
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Pillar of the Community
United States
997 Posts |
OK, there has been many discussions on what to do with the US coinage situation. Here is another take on it: How about eliminating the 1 Cent, 5 Cent and 25 Cent coins as well as the paper dollar, $2 and $50 bills, put the half dollar back into daily use and add a $2 coin? The half dollar should be reduced in size and weight to slightly larger than the current quarter now that coins have no real relationship to metal value. The $50 is pretty rarely used and no one would notice it was gone. This would leave 4 coins and 4 bills in circulation, the dime, half, dollar and $2 coins. Paper bills would be $5, $10 $20, and $100. Down the road a $5 coin would likely replace the $5 bill. This simplified structure would accommodate the overwhelming majority of daily transactions. The few small cash purchases would round to the nearest dime, larger ones would continue pretty much as they are. Mr. Fox would be happy with the larger value coins. The cent and nickel cost more than they are worth and can be eliminated with little loss of function in daily business. The Quarter would be difficult to use without a 5 cent piece and a 20 cent piece would not really be needed as it can be replaced with 2 dimes. Most coin purchases are above a dollar or so anyway, (vending machines etc.) and most new machines accept paper or plastic money these days. There would be no need for a big effort to remove older coins from circulation, the public would likely hoard them anyway for old times sake. |
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Pillar of the Community
Canada
3167 Posts |
Sounds good to me, but good luck convincing the rest of the public to go down without fight  |
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Bedrock of the Community
United States
11951 Posts |
After seeing a lot of these post, can I ask a question?
What is wrong with what we currently have, what doesn't work
with what we have now?
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Pillar of the Community
United States
4867 Posts |
I agree the penny should go but everything else should stay the same.
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Pillar of the Community
 United States
997 Posts |
GR58: The penny and nickel are worth nothing in buying power and exist only to make change. They cost more to make than their value.
The paper dollar has been proven to be less financially efficient than coins.
There are too many coins being made for the wrong reason. Coins should be made for circulation and be effective at that. Currently the penny, nickel, half and dollar coins are not. Same goes for the $1, $2 and $50. The above fixes that.
Noah is correct however, ain't gonna happen, regardless of how good an idea it is...
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Bedrock of the Community
United States
20753 Posts |
With our present system there are 291 ways to make change for a dollar. Sounds like fun for kids to try to make them all. I suggest going back to adding even more such as the return of the Mill, 2 Cent, 3 Cent, 20 Cent pieces. Imagine the fun watching a casheir at Walmart trying to make change. If your on the lets change our monitary system, why not make all coins and currency in the .99 range. .99, 1.99, 2.99, etc. Everywhere you go today all the prices are like that anyway. Even gasoline for your car is never an even amount and always in the .99 area. Nothing is exactly $1, $2, etc. Always $4.99 or something like that.   |
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Moderator
 United States
188213 Posts |
Quote:
The half dollar should be reduced in size and weight to slightly larger than the current quarter So it can be confused with the baby dollar.  Quote:
What is wrong with what we currently have, what doesn't work with what we have now? The cent and nickel cost a lot more than they are worth. Eliminating the cent is easy, but eliminating the nickel makes life difficult for the quarter. |
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Bedrock of the Community
United States
11951 Posts |
IMO I think most are missing the point of what the current cent is for.
Not to make change, but it is for tax. It is hard for local/state/ federal to get a one cent raise in tax, they would never get a five cent raise in tax.
I am thinking most do not do the math, as to how much extra they would spending each year. Without a one cent coin, and having to round up.
Lower income people it would hurt them the most.
Even though it is not cost effective to make cents or nickels, that is the cost of doing business.
If people really wanted to help with this problem, they would stop keeping their change, putting them into containers at the end of the day. They should put them back I to circulation or take to them to bank. That way we would have to make far less coins.
I am not talking about collectors, but just the general public keeping coins.
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Moderator
United States
188213 Posts |
Sorry, but this is incorrect. Taxes are a percentage, not a fixed amount. Taxes are not raised one cent or five cents, but one or two or five or some other percent. Our sales tax is already rounded to the nearest (not highest) cent. It can be rounded to the nearest (not highest) nickel just as easily. I can see the argument if we had a VAT system, but since sales tax is applied to the total of all items at the time of sale, rounding only has to occur once. If the cent were really necessary for this reason, then we should still have a half-cent for those odd-ball places with 7.5% sales tax. I have said, many times, that electronic sales will still be to the cent and cash sales are likely to be rounded down since the vendor does not have to pay the electronic processing fee (they still come out ahead); and if they do not do it, their competitors will. Besides, if Canada can do it, so can we. |
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Bedrock of the Community
13014 Posts |
I have to agree with GR. So the penny costs a little more to make, not ideal but certainly not broken. Broken would be having a quarter with no nickel or penny where you physically couldnt make chance or having change that you couldnt add up to a dollar with. The change does exactly what its intended too make change for purchases with dollars.
If people really wanted it changed it would be changed, people just dont care and are happy with what they have now. Its the same argument with dollar coins. If people really wanted them wed have them. Its one thing to say yes in a poll but people didnt use them time and time again which tells you what people really think of them.
Every major change has unintended consequences and no where has a population thats comparable to the US in terms of size and make up. If a change was to occur it has to be during an economic boom so humps in the road and those opps we didnt think that would happen moments wont be a big deal. Now is not the time to be messing with overhauling currency. Changing designs is one thing eliminating denominations though is another.
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Moderator
United States
188213 Posts |
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Pillar of the Community
United States
997 Posts |
The problem with the quarter is exactly why this proposal has it eliminated in favor of the half dollar. With no 5-cent piece the quarter is harder to deal with.
I agree that this, as well as the many other valid proposals are likely never to be seriously considered due to the lack of desire to change. I could see the cent and paper dollar eliminated in this decade but that is about it.
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Pillar of the Community
Canada
3167 Posts |
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If people really wanted it changed it would be changed, people just dont care and are happy with what they have now. No, this is where you are mistaken. Some people do wish that this outdated system, made for a technology-less world, could be replaced. It is just the fact that there are some others who do not want to consider a change in the currency system. IMHO, this problem is occurring in many areas. Humans are inventing technology that is changing the way the world works, but we don't bother to re-invent the systems that we already have. A basic example is the education system, but that's a whole different story.  |
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Moderator
United States
188213 Posts |
The reluctance to change our change confounds me. We got rid of the Half Cent and changed our Half Dime into a nickel. We survived. |
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Pillar of the Community
United States
4867 Posts |
Our northern friends in Canada didn't fall off the map when the cent was discontinued. It can be done.
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Pillar of the Community
United States
6130 Posts |
How do people carry their $1-5 coins where they are used? Most Americans carry their paper bills in a wallet, and coins go into a jar at home. If you are going to use cash exclusively, it helps to have a few of every coin denomination in your pocket, but it is not efficient or convenient for most people.
I agree that the penny is pretty much useless, but I don't see the call for discontinuing every denomination that doesn't turn a profit. That profit isn't free money; it's inflation. I don't see why people struggle with that. Before the 1950s, coins were made to be durable as heck, and they circulated for decades until they were worn down to a smooth disc. Why can't we go back to that? Durable coins and low mintage = lower overall production costs and lower inflation.
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Replies: 24 / Views: 3,258 |
Posted 11/06/2013 10:32 pm
