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The US needs to make some big changes to its currency. Pennies cost about 1.8 cents to make and are never used. Nickels cost over 9 cents to make and are barely used more often than pennies. Dollar bills are a lot more expensive to make than dollar coins. The government is throwing away A LOT of money, amirite?

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Cpt_McMuffins avatar Money & Economics
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Just another way Canada is financially ahead of America.

Anonymous +10Reply
@Just another way Canada is financially ahead of America.

Yeah, I live in a country that makes no sense.

Cpt_McMuffins avatar Cpt_McMuffin Yeah You Are +5Reply

The US needs to get loonies and toonies, they're much better than dollar bills.

@Montana

CGPGrey is awesome.

Cpt_McMuffins avatar Cpt_McMuffin Yeah You Are 0Reply

I seem to recall a documentary saying
"money making is the most profitable business in America as it only takes 3cents to make each bill."

I could be remembering the cost wrong, it was a couple years ago...

Anonymous +1Reply
@I seem to recall a documentary saying "money making is the most profitable business in America as it only takes...

It costs about 4.2 cents to make one right now. That doesn't seem like a lot, but it actually is compared to dollar coins. Considering how many dollar bills are made every year, and how much longer dollar coins can stay in circulation, it's a huge waste of money.

Cpt_McMuffins avatar Cpt_McMuffin Yeah You Are +3Reply
@Cpt_McMuffin It costs about 4.2 cents to make one right now. That doesn't seem like a lot, but it actually is compared to...

But it'd cost the same to make 1 as it would to make 100 so you're pretty much winning at it in every scenario.

Anonymous +3Reply
@But it'd cost the same to make 1 as it would to make 100 so you're pretty much winning at it in every scenario.

Making a one hundred dollar bill is understandable, as it's worth moe than 2,000 times what it costs to make. However, making a one dollar bill is sort of a waste. I said a dollar coin is cheaper to make before, which was a mistake. However, making dollar coins instead pays off in the long run because they stay in circulation much, much longer.

Cpt_McMuffins avatar Cpt_McMuffin Yeah You Are +4Reply
@Cpt_McMuffin Making a one hundred dollar bill is understandable, as it's worth moe than 2,000 times what it costs to make...

But if you make one bill of each denomination, you've spent about 25 cents but you've made $185.75.

So I'm not really seeing the fail, but I'm simple.

Anonymous 0Reply
@But if you make one bill of each denomination, you've spent about 25 cents but you've made $185.75. So I'm not...

Yes, you are still making money, but you could be making much more by getting rid of the dollar bill. Basically, to make one dollar bill it costs 4.2 cents. Every few months, that bill will wear out and have to be replaced, costing another 4.2 cents. If you switch to dollar coins, you would only have to replace one about every 30 years, much more efficient. We wouldn't even have to make a lot of dollar coins to make the switch, as we already have thousands in the country that aren't being used simply because people like paper money. Also, because of the denomination effect people would be inclined to spend more money if we used coins as opposed to bills, which would help the economy.

Cpt_McMuffins avatar Cpt_McMuffin Yeah You Are +4Reply
@Cpt_McMuffin Yes, you are still making money, but you could be making much more by getting rid of the dollar bill. Basically...

Logical.

Although everyone I know who has dollar coins doesn't spend them because they're hoping they'll be worth something someday.

Anonymous +3Reply
Anonymous +3Reply

no. who makes those pennies and nickels you convienently want to throw out? if they take out nickels, where will the 9c of tax money go for every small thing you buy? it adds up, and it adds up to a lot of negatives

names avatar name No Way +1Reply
@Cpt_McMuffin Umm, what? Please rephrase that, I'm afraid I don't understand.

if we stop production of nickels and pennies, there will be less jobs (which is bad). if there are no nickels or pennies, everything will either be rounded up in cost (which will make citizens angry), or have less money though GST or any taxes there are in your region (because we cannot give less than 10cents to taxes, those will be cut and the overall percentage will be lower).

sorry if i sucked at explaining

names avatar name No Way 0Reply
@name if we stop production of nickels and pennies, there will be less jobs (which is bad). if there are no nickels or...

That is not actually true. Countries like Australia, New Zealand, England (I think), and many others discontinued their lowest value coins (most of which were roughly equal to the penny) a long time ago and no such things happened.

Cpt_McMuffins avatar Cpt_McMuffin Yeah You Are +3Reply
@Cpt_McMuffin That is not actually true. Countries like Australia, New Zealand, England (I think), and many others discontinued...

they australian GDP dropped from ~1993-1995 and the penny was discontinued in 1992. new zealands dropped slightly in 92, but recovered quickly so it may not have affected it. UK also dipped from 84-86 but that is the bad news.

Image in content

yeah, thats pretty bad.

names avatar name No Way 0Reply
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@1647215

That's an okay idea, BUT the government would then be able to see exactly how much money everybody has. This can be a problem when trying to get loans. Example: My friend kept as little money in his bank account as possible and the rest he kept as cash in his safe deposit box because if the loan agency could see how much money he had altogether, they probably wouldn't have given him that big of a loan for school.

There are many other issues that could arise if everything was electronic. Like if our banking system collapsed or was hacked into, people would lose all of their money. And I'm just skimming the water.

But for the most part, the government does need to get rid of pennies for sure. Nobody gives a shit about pennies. One more thing I think they should do is already have the tax included in the shelf price of items in stores.

StickCavemans avatar StickCaveman Yeah You Are +15Reply

They should just make all money in coins because they last a lot longer than paper.

Anonymous -6Reply
@They should just make all money in coins because they last a lot longer than paper.

That would be so inconvenient. Imagine how heavy your pockets would get after a while.

StickCavemans avatar StickCaveman Yeah You Are +11Reply
@StickCaveman That would be so inconvenient. Imagine how heavy your pockets would get after a while.

As inconvienent as it is, she brings up a good point. Coins stay in circlation longer because they don't suffer from as much wear and tear. By changing bills to coins, the US would be saving quite a bit of money.

@They should just make all money in coins because they last a lot longer than paper.

I wouldn't say ALL money, becaue like StickCaveman said it would be inconvenient. If we could start using the one dollar coins we already have, that would be great.

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