We Agree On the Penny, Now Let’s Do The $1 Bill
We Could Save Billions by Switching To A Dollar Coin.
There is not much President Trump, and I have agreed upon since his return to office. However, I have argued for years about the value of eliminating the 1-cent piece from production. Not to toot my own horn, but I even wrote, “As little as I care for the current Administration, this seems like something President Trump would wholeheartedly get behind.” Apparently, Elon Musk’s recent “discovery” and his direct line to the Oval Office was the sole requirement for policy change. The truth is, anyone with a cursory knowledge of the United States Treasury Department, was aware of the myriad of reasons that the penny should have been discontinued long ago. My argument, from 2019 while old, still applies, but it was by no means an original idea. Maybe Elon Musk could jump on the bandwagon early this time and adopt this next suggestion so the government can save a few extra billion.
Those, with a direct line to his office, should ask President Trump to investigate the United States dollar next. It needs to be eliminated as well. I know George Washington on the $1 bill is iconic. I am not arguing against its iconography, but to be fair, Abraham Lincoln on the penny is also iconic but it is likely coming to an end. The costs to the American people outweigh the benefits and it is a way to trim the federal budget without eliminating or cutting any public services or benefits. Such a proposal should be amenable to politicians from both sides of the Congressional aisle.
Let us get right to the nuts and bolts, the cost of production, the life expectancy of the currency, and its value to the public are the only three items that should be considered. According to the Numismatic News, in 2023, it cost $.10 to mint a modern United States dollar coin based on its current composition as compared to $.057 to print a dollar bill. However, the lifespan of a $1 coin is approximately 30 years when contrasted to the short 6.6-year lifespan of paper money. By their calculations, it costs $.243 or 4 ½ times the original minting costs when extrapolated over the 30-year life of a coin.
In fairness, there are arguments against change. Some industries such as casinos and armored car carriers feel that a switch would negatively affect them, but the greatest obstacle to acceptance has been the American public’s historic disdain for $1 coins. The United States Mint has tried to attract public support. The Eisenhower, the Susan B. Anthony, the Sacagawea, and the President's dollar coins have all been introduced to the public over the past 50 years. All were failures. The Treasury Department is even sitting on $1.5 billion of unused coins.
When polled, Americans support continued usage of bills over coins, except in one specific circumstance. When the people are educated on the potential savings to the United States Government, they are suddenly amenable to shifting their support. The Dollar Coin Alliance, a business organization devoted to switching, asked such a question in 2017. It seems Americans are willing to switch preferences if the country can receive a tangible benefit.
The United States Mint could go even further and adjust the metal composition. This would lead to more savings. Changing the metals used in the dollar coin without damaging the functionality could also create significant savings according to the GAO (General Accounting Office).
Perhaps, what it takes are Populists, such as Elon Musk and President Trump, to investigate and drive the narrative. Does anyone doubt that if President Trump suggests such a switch was a good idea, his MAGA base wouldn’t rally and accept the idea as gospel?
I would take it. It would be dishonest to say an idea was bad for the country when I truly believed it was good just because I do not like the people promoting it. Common ground is common ground.
If you have a chance, read my 2019 article — “Let’s Bury The Penny”
