Changing Change - What should the U.S. Mint do?

[Chris]

I read that it costs 2.4 cents to make a penny and 11.2 cents for each nickel. The U.S. Mint is discussing changing the mix of metals to make it less expensive. Apparently the administrative cost of making a penny costs half a penny.

I personally think we should get rid of pennies, nickels, and dimes.

What do you think?

 

[Cerulean Mutt]

I agree.

And while we're at it, get rid of the paper dollar bill.

 

[Chris]

Maybe they should offer everyone a 25-50% value bonus for bringing their change into local banks for a few days. Everyone wins. Think about how much change is hoarded away in people's closets and drawers.

 

[Bo-4]

Get rid of the penny! What a waste of time. Then nickels (I rather like dimes ;-)

 

[Bo-4]

Maybe they should offer everyone a 25-50% value bonus for bringing their change into local banks for a few days. Everyone wins. Think about how much change is hoarded away in people's closets and drawers.

I dunno Chris. In hard economic times people tend to recycle their change more often. I take mine to the Coinstar machine every 6 months or so. It doesn't even charge a fee if i choose an Amazon voucher.. which i can always use!

Back in the more prosperous 90's i remember friends who had 5 gallon plastic water bottles full of change. Don't see much of that sort of hoarding anymore.

 

[moddem38]

Down with the penny!

I read that it costs 2.4 cents to make a penny and 11.2 cents for each nickel. The U.S. Mint is discussing changing the mix of metals to make it less expensive. Apparently the administrative cost of making a penny costs half a penny.

I personally think we should get rid of pennies, nickels, and dimes.

What do you think?

Let's start with the penny and see how that goes. It should have been abolished years ago. There's a good YouTube video on this subject by economist Alex Tabarrok.

 

[Days]

make the dime the new penny.

Did you know that the peso had a penny? It was this giant thin copper coin... completely worthless.

 

[Bo-4]

make the dime the new penny.

Did you know that the peso had a penny? It was this giant thin copper coin... completely worthless.

People don't even bother to pick up pennies on the sidewalk anymore. I leave mine in the little dishes at convenience stores and borrow back when i need them. Think about the store clerks who have to count them at the end of each day. What a waste of human labor!

 

[Days]

But this is the exact opposite of what should be happening. The money is supposed to be valuable, that's the whole point of having money. If we didn't have fiat money and we didn't assign value, then we could stick with the copper, nickel, and silver and keep the coins pure, that's how the money was set up.

 

[Dave]

Doesn't everyone just use credit cards nowadays anyway? Get rid of all physical money!!!

 

[Dave]

But this is the exact opposite of what should be happening. The money is supposed to be valuable, that's the whole point of having money. If we didn't have fiat money and we didn't assign value, then we could stick with the copper, nickel, and silver and keep the coins pure, that's how the money was set up.

Agreed, we should really just go to silver and gold pieces and call it a day.

 

[888888]

Pennies and nickels can go bye bye. Taxes can be anything under 5 cents can go down, anything over goes up.

20.54 is 20.50
20.55 is 20.60

 

[fairsheet]

I say, keep the penny. Although...if they can come up with a way of manufacturing it cheaper, that'd be fine by me.

For one thing, the penny has value if only as a matter of American tradition and confidence, and what it suggests about us and the value and solidity of our currency itself. In other words...lesser nations have "inflationed" themselves to the point where they can no longer afford to continue issuing their lesser denominations, but not us!

But for another, I'm guessing the penny offers all sorts of little bits of "value" offsetting the cost of it's production, that we don't even contemplate. As one for instance, when I buy something for 96 cents, I pay a buck for it and put the four change-pennies in the cup on the counter. Not only have I just voluntarily "taxed" myself 4%, but I've also INCREASED the value of that dollar, by 4%! (I received what I perceive as $1 in value, but there are 4 cents left over).

Or...in a somewhat similar fashion, let's say I "burn" 1 cent for every dollar I spend, by putting it in the "cup", tossing it in a jar at home, or...throwing it down the storm drain. In that case, I'm increasing the actual value of each dollar, by (almost) 1%.

 

[Cloner]

Well... imo, there is no need for the penny in the world today. We could easily round the costs of everything to the nearest nickel.

More importantly, I think the use of metal itself it an outdated concept. there are many other materials at our disposal that would be cheaper, lighter and more resilient than metal coins.

They could even be made with the needed weight and size requirements to match existing coins for items like vending machines, if that was a concern.

 

[Cloner]

Agreed, we should really just go to silver and gold pieces and call it a day.

money isn't really worth anything except the value we assign it. The US treasury used to back all their money with gold, but there isn't enough gold now to even come close.

Also, if we went with pure gold and silver coins, they would be incredibly tiny.... one nickel's worth of gold isn't a whole lot =p

 

[Craig]

I say keep the small change and move into greater denomination coins. A one dollar coin is a massive savings to the mint/bureau of engraving...and a $2 and $5 coin would increase that savings even more.

However...we have failed at our last few $1 coins. The reasons are numerous, but the most intractable is our inability to let go of the greenback. Therefore...the $1 bill must be phased out as well. The design has to be correct as well...not too close to our other extant coins, but close enough so vending machines could be adjusted but diffeent enough so that general confusion is avoided. This type coinage works in every other country...Canada has lovely $1 and $2 coins...the "loonie" a 12 edges design...and the twonie comprised of different metals. The euro has a similar set up.

 

[Dave]

money isn't really worth anything except the value we assign it. The US treasury used to back all their money with gold, but there isn't enough gold now to even come close.

Also, if we went with pure gold and silver coins, they would be incredibly tiny.... one nickel's worth of gold isn't a whole lot =p

Works in world of warcraft! LOL

 

[Days]

my goodness, this is so far over your head, it amazes me. Americans just can't fathom how real money works. When THX1138 reaches the surface, he has no idea where he is... what is this place?

Make a nickel out of gold?

Try to catch up with me, nickels are made out of nickel. Copper coins are made out of copper, silver coins are made out of silver. That's called real money. When Thaler minted silver coins, he didn't assign an arbitrary value to the coins, he fixed a seal... certifying exact weight and purity. standard measurement... just like the Constitution says Congress is supposed to do with our silver Thalers (pronounced "dollar" in English).

Yeah, not only do we have a sun and moon up here on the surface, get this, it rains.

 

[Figjam]

...LOL - you may be on to something there Chris. I have two overflowing beer cups full of coins that just sit there and collect dust...

 

[lilly]

Dave, I just heard that on CNN, I'd say get rid of the dime and find something less expensive to make the nickel. If they got rid of the penny I'm afraid retailers would march in the streets.

No more $5.99 etc and have to post $6.00....we all know it's $6 but our mind looks at the 5 and that's what they count on. Why else would they price something $99.00 and not $100.

I just couldn't believe they were paying that much to make those two coins.