Should our $1 Bill be a $1 Coin?

The GAO, the U.S. Government Accountability Office, says that replacing the $1.00 bill with a $1.00 coin will save the government approximately $5.5 billion over the next 30 years. See: U.S. Coins. The catch is that the government would experience a net loss in the first four years because of the cost of increasing coin production at the mints. Experts also say that the use of a $1 coin will not catch on unless the $1 bill is eliminated at the same time. Canada and the UK have been successful at implementing coin usage by eliminating their lower denomination currency. The European monetary system does not have a 1Euro note but does have 1Euro and 2Euro coins.

The change from bills to coins will require some cash intensive businesses to re-tool or make adjustments. Vending machine and toll booths would have to be modified and armored car drivers would have to heft more weight. LasVegas, however, already has $1 slot machines that use coins, and $1.00 bills aren't taken very seriously there anyway. I am no expert in this, but I think a $1 coin will provide a big boost to the economy. The reason is simple: It is much easier to spend a coin than it is to spend a bill. You don't have to pull out a wallet or bill fold to spend a coin. Coins are generally considered "spare change," but bills are never thought of that way. (Maybe that's why casinos use chips instead of bills at the tables?) Coins just rattle around in your pocket. Some people even casually throw them into a jar at home at the end of the day.

Coins just don't get the same respect as bills! That makes them easier to spend. That $3.00 cup of coffee at Starbucks may not seem so expensive if you are paying for it with pocket change. Take our poll at the top left and tell us what you think.