U.S. Government Proposes Elimination Of $1 Bills

One Dollar BillYahoo Finance reports:

Washington has come down with a case of fiscal fever as the Obama administration proposes everything from spending freezes on domestic programs to selling off unused government property to bring the budget back in line. Now, one study argues that the government can save billions of dollars simply by making a change to the currency itself.

Earlier this month, the U.S. Government Accountability Office issued a formal proposal to the Treasury and Federal Reserve noting that if it eliminated the $1 bill and replaced it with the $1 coin, the country could save roughly $5.5 billion during the next 30 years. The reason, according to the agency’s report, is that dollar bills have a shorter lifespan than dollar coins because they wear much faster, which in turn requires the government to spend more to print new bills.

The GAO estimates that phasing out dollar bills in favor of coins would require a four-year transition period, during which the government invests in the new currency, but following that, the government would save an expected $522 million each year from the change.

For more information, see original article.

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  • CharlieSheen

    It’s gonna hurt making it rain

  • CharlieSheen

    It’s gonna hurt making it rain

    • supervexi

      And yet, it could be so much more fun

  • http://voxmagi-necessarywords.blogspot.com/ VoxMagi

    Excellent…a thoughtful shift from worthless symbolic paper to worthless symbolic coins.

  • http://voxmagi-necessarywords.blogspot.com/ VoxMagi

    Excellent…a thoughtful shift from worthless symbolic paper to worthless symbolic coins.

  • Anonymous

    LOL. $5.5 billion in the next 30 years. It’s funny how so many of these cuts that are being proposed fall under the “few billion in the next few decades” category and therefore won’t have any noticeable affect on the budget at all. In fact, many of these cuts will be worse for the economy considering the negative social impacts they will have (obviously this dollar bill proposal is excluded).

    If you don’t touch the defense and national security budgets, the overall budget will NEVER balance. No way, no how in the current climate of two wars, the great possibility of soon-to-come wars and a rapidly increasing police state. Good luck with that one, America.

  • smooth_operator

    LOL. $5.5 billion in the next 30 years. It’s funny how so many of these cuts that are being proposed fall under the “few billion in the next few decades” category and therefore won’t have any noticeable affect on the budget at all. In fact, many of these cuts will be worse for the economy considering the negative social impacts they will have (obviously this dollar bill proposal is excluded).

    Firstly, if you don’t touch the defense and national security budgets, the overall budget will NEVER balance. No way, no how in the current climate of two wars, the great possibility of soon-to-come wars and a rapidly increasing police state.

    Secondly, how can anyone truly believe that the budget will ever even have a chance at healing if Wall Street and corporate America are allowed to continue their practices of economic butt-rape all in the name of profit? Perhaps there would be some of that good ol’ “hope” that Obama keeps touting about if the government actually had the audacity to punish Wall Street and corporate interests. But nope, instead they decided to use taxpayer money to put said interests on life support after their epic failures and then enacted laws to further protect those said interests.

    Good luck, America, good luck.

  • http://twitter.com/hornetmontana Hornet Montana

    Our facility numismatist wonders how the $1 bill has a “shorter lifespan” than the other bills, if that is what is being inferred. If so, make ALL the bills coins, no?

  • http://twitter.com/hornetmontana Hornet Montana

    Our facility numismatist wonders how the $1 bill has a “shorter lifespan” than the other bills, if that is what is being inferred. If so, make ALL the bills coins, no?

    • http://twitter.com/jonnyxbrainless Jonathan Goddard

      Arguably, dollar bills are more frequently passed in transactions than, say, a twenty, fifty or hundred dollar bill. As single dollar bills are used in small transactions, for example buying a soda, they get treated more roughly than the higher value bills.
      Here in the UK, we phased out the £1 note in the early 80s; a move also taken by many other countries with their low-denomination notes. This idea is by no means new and does have some benefits.

    • Butter Knife

      That’s not the conclusion at all. They’re saying that $1 bills have shorter lifespans than $1 coins, and that $1 is now worth so little that the expense of printing bills in that denomination has become economically silly.

      Basically, it costs the same amount of money to print a $1 bill as a $20 bill, but the latter is worth 20x as much, and therefore better justifies the expense.

  • Renehto

    Want to save more money? Get rid of the penny, you dumbasses. it costs MORE to make a penny than a penny is worth.

    • http://hormeticminds.blogspot.com/ Chaorder Gradient

      Their initial solution to this was to make it out of an even cheaper metal than copper…. has it devalued so much that the zinc its made of is worth more than a penny? It wouldn’t surprise me…

      • saint_al

        @ Renehto, nemoide & Chaorder Gradient: The US Mints have never issued a Penny. They issue Cents.

        /just bein’ technical…

        • justagirl

          i think you just raised the bar for “most annoying comment” recorded.

        • Johan

          Pedantic actually.

    • nemoide

      This would be a serious concern if pennies were used once and then destroyed. However, because pennies circulate many, many times, it does not hurt the government to continue making them. The true value in money is in how much it circulates!

    • klaus

      so much this.
      can we please get rid of the 1 cent piece already!

  • Renehto

    Want to save more money? Get rid of the penny, you dumbasses. it costs MORE to make a penny than a penny is worth.

  • http://hormeticminds.blogspot.com/ Chaorder Gradient

    Dollar coins will begin to be made of compacted dirt to reflect their real value.

  • http://hormeticminds.blogspot.com/ Chaorder Gradient

    Dollar coins will begin to be made of compacted dirt to reflect their real value.

  • Rex Vestri

    They all keep coming up with these ideas to save a little here, a little there, and pretend like they’re really concerned about the budget. What complete BULLSHIT! If they were serious about it then they wouldn’t have extended the Shrub tax cuts.

    -TAX the rich!
    -TAX corporations, CLOSE their tax loopholes, but give them incentives to bring jobs & manufacturing back to the US!
    -Cut military spending and stop fighting imperialistic wars around the world!
    -Abolish the Federal Reserve Bank!
    -Overturn the ‘Citizens United v. Federal Election Commission’ supreme court decision!
    -End the War On Drugs, decriminalize them, and spend the money on voluntary treatment programs instead!
    -Regulate the hell outt’a Wall Street and the banking industry!
    -Prosecute the banksters that put us in this mess o’shit to begin with!
    -Prosecute Dick & Dubya for treason and the lies they propagated to get us into Iraq & Afghanistan!

    .

    • Reverendbeatdown

      Keep it coming rex

  • Rex Vestri

    They all keep coming up with these ideas to save a little here, a little there and pretend like they’re really concerned about the budget. What complete bullshit! If they were serious about it then they wouldn’t have extended the Shrub tax cuts.

    TAX the rich!
    TAX corporations, and CLOSE their tax loopholes, but give them incentives to bring jobs back to the US!
    Cut military spending and stop fighting imperialistic wars around the world!
    Overturn the Citizens United v. Federal Election Commission court decision!
    End the War On Drugs, decriminalize them, and spend the money on voluntary treatment programs instead!

  • Yazi

    How about the US government start a bank, and give all citizens an account. No more physical money, everything will be paid by Visa, which can be integrated into the bank. Everything from social security to assistance to your paycheck will go through this account. Then, no need for paper or coins, and your card will be good outside of the country. In fact, combine the bank card and a national identity/social security/healthcare card.

    • squidpig

      Not a very good idea.What happens when the people finally rise up? The government will just turn you’re account off till you start playing nice.

      • Butter Knife

        If the government declares money invalid (which is what would happen in your scenario) then people are left to either choose a new money or reinstate it. If they cannot manage this relatively simple transition, then the very notion that they could possibly overthrow the entrenched government is hopeless fantasy anyway.

        I agree that it’s a bad idea, but not for the reason you suggest.

  • Yazi

    How about the US government start a bank, and give all citizens an account. No more physical money, everything will be paid by Visa, which can be integrated into the bank. Everything from social security to assistance to your paycheck will go through this account. Then, no need for paper or coins, and your card will be good outside of the country. In fact, combine the bank card and a national identity/social security/healthcare card.

  • Andrew

    This is insane. Money was invented by humans, is manufactured by humans, and operates according to rules we made up. Don’t get me wrong, it’s a great invention, but it is not a force of nature. It is not a law of physics. It is not a God. It’s a medium of exchange, not real wealth. It’s merely potential wealth. It has value by agreement only, not by being “backed up” by some metal that is mainly valued because of it’s rarity. To limit trade and exchange because of the lack of an artificial medium is insane.

    Some people get upset when the Fed prints money, but they don’t when banks charge or pay interest. What’s the difference? Printed dollars should be rare while electrons in banks’ computers are okay? Hell, why don’t they worry when a kid sells a baseball card for more than he bought it for? Better yet, explain to me why people should be left to starve because they can’t do that.

    Some people worry about the monetary value of their homes, while other people don’t own shelter.

    No society can accurately say it doesn’t have enough money, only that it doesn’t have enough real goods or services to either take care of itself or to trade with other societies. Is either true of America? No, therefore America is not broke.

    Economics is a social science. It’s a game we made up to help us decide who gets what. A dollar is a promise, not a reality. Fiscal conservatism is either delusional, or an intellectual manipulation to keep those who have less than they need working for and buying from (and therefore under the control of) those who have far more than they need. And I’m not arguing everyone have equal. Just that letting a nation flounder or even die because of a lack of electrons in our computers is fucking insane.

    We created money. We don’t have to obey it.

    • http://hormeticminds.blogspot.com/ Chaorder Gradient

      I like what you say except the last statement.

      “We”* didn’t create money, other humans did, and those humans are telling us that we DO have to obey it. That is what scares people. We** are divided now between those who blindly obey, and those who see and want to refuse.

      Making notes for clarity, because I’m apparently confusing
      *note: “We” entails the people who are currently reading this page on disinfo
      ** We (no quotes) here entails humans as a whole, excluding the things in the power structure who are probably reptilian aliens allied with greys, allied with deep-sea mermaids, allied with mole-people. In fact they probably invented money, not us nice little humans… crap i think i made it more confusing

      • Johan

        Are you deliberately misunderstanding what he said or just mistaken?

        • http://hormeticminds.blogspot.com/ Chaorder Gradient

          Not sure what you mean. My point was that in this lovely land of majority rules, where the majority does not read and understand the kinds of points he’s making, those who refuse to obey these perceived “natural” laws of economics will be outcasted, ridiculed or otherwise.

          I guess I spoke a little too hastily and pessimistically though; people are starting to wake up, slowly; hopefully not too slowly though.

          • Johan

            It seems to me that you are deliberately misunderstanding what he said in order to make some point.
            We created money. Humans. Us. We invented it. You know what he means by that, I have to assume, yet you pretend that you don’t so that you can disagree with something that he didn’t say.

          • http://hormeticminds.blogspot.com/ Chaorder Gradient

            Of course I know we as humans in general have created money, as well I know that the “science” of economics is not a field grounded in grand truths but is a human creation. I’m just trying to get across that the power structures out there have incentives to, and probably will try to hold onto this system and frame of thinking, and will try anything to keep it that way.

            Sometimes I like to speak cryptically, but if you want me to put it bluntly, here: Sure we don’t have to obey the current monetary system, we can change it, BUT it will be a difficult road to take (I just cant keep away from speaking in riddles)

          • Sleeplessinyourmom

            “I guess I spoke a little too hastily and pessimistically though; people are starting to wake up, slowly; hopefully not too slowly though.” Its called being a judgemental prick… you and andrew do that alot.

          • Andrew

            Reduced to insults, eh?

          • http://hormeticminds.blogspot.com/ Chaorder Gradient

            hey, sometimes i like to be a prick. I tend to reflect the person i’m talking to. Judgmental? Well, ignoring the sting you’re trying to put in there, I do tend read what people say, then judge what kind of person i’m talking to or what kinda ideas they believe… so I guess you could say i’m a little judgmental.. just not in the way you mean.

            In continuing with being a judgemental prick I will say this: I have no idea why that quote you took of me has anything to do with me being a judgmental prick, so your arguments don’t really make any sense (crap… if what you say is nonsense, then why am I wasting time typing this response?)

  • Andrew

    This is insane. Money was invented by humans, is manufactured by humans, and operates according to rules we made up. Don’t get me wrong, it’s a great invention, but it is not a force of nature. It is not a law of physics. It is not a God. It’s a medium of exchange, not real wealth. It’s merely potential wealth. It has value by agreement only, not by being “backed up” by some metal that is mainly valued because of it’s rarity. To limit trade and exchange because of the lack of an artificial medium is insane.

    Some people get upset when the Fed prints money, but they don’t when banks charge or pay interest. What’s the difference? Printed dollars should be rare while electrons in banks’ computers are okay? Hell, why don’t they worry when a kid sells a baseball card for more than he bought it for? Better yet, explain to me why people should be left to starve because they can’t do that.

    Some people worry about the monetary value of their homes, while other people don’t own shelter.

    No society can accurately say it doesn’t have enough money, only that it doesn’t have enough real goods or services to either take care of itself or to trade with other societies. Is either true of America? No, therefore America is not broke.

    Economics is a social science. It’s a game we made up to help us decide who gets what. A dollar is a promise, not a reality. Fiscal conservatism is either delusional, or an intellectual manipulation to keep those who have less than they need working for and buying from (and therefore under the control of) those who have far more than they need. And I’m not arguing everyone have equal. Just that letting a nation flounder or even die because of a lack of electrons in our computers is fucking insane.

    We created money. We don’t have to obey it.

  • http://hormeticminds.blogspot.com/ Chaorder Gradient

    Their initial solution to this was to make it out of an even cheaper metal than copper…. has it devalued so much that the zinc its made of is worth more than a penny? It wouldn’t surprise me…

  • Stellarkaye

    Wouldn’t it cost more for everyone else in transporting the extra weight? Plus modifications to all the vending machines on the planet? All the money counting machines? Why not stop printing all money and require everyone to use crdit or debit cards?

  • Stellarkaye

    Wouldn’t it cost more for everyone else in transporting the extra weight? Plus modifications to all the vending machines on the planet? All the money counting machines? Why not stop printing all money and require everyone to use crdit or debit cards?

    • http://hormeticminds.blogspot.com/ Chaorder Gradient

      Or maybe we should have an RFID chip under our skin that contains our bank account information, so you just have to scan your forehead whenever you make a purchase, and it just skims the money off your account.

      The best part of this would be pesky terrorists, and petty theives, and freedom fighters, and free thinkers, and union organizers ,and annoying children can just have their chip turned off if they get out of line, so we don’t have to deal with them.

  • Anonymous

    This would be a serious concern if pennies were used once and then destroyed. However, because pennies circulate many, many times, it does not hurt the government to continue making them. The true value in money is in how much it circulates!

  • Anonymous

    I have no problem with this. There’s a part of me that thinks coins are neat.

  • nemoide

    I have no problem with this. There’s a part of me that thinks coins are neat.

  • squidpig

    Not a very good idea.What happens when the people finally rise up? The government will just turn you’re account off till you start playing nice.

  • squidpig

    Not a very good idea.What happens when the people finally rise up? The government will just turn you’re account off till you start playing nice.

  • http://pulse.yahoo.com/_H5H2CKF34N6ZHUOG2CBHREG4M4 lilbear

    the new dollar bill will soon be out in ‘new and improved 2 ply’

  • http://pulse.yahoo.com/_H5H2CKF34N6ZHUOG2CBHREG4M4 lilbear

    the new dollar bill will soon be out in ‘new and improved 2 ply’

  • http://hormeticminds.blogspot.com/ Chaorder Gradient

    I like what you say except the last statement.

    “We” didn’t create money other humans did, and those humans are telling us that we DO have to obey it. That is what scares people. We are divided now between those who blindly obey, and those who see and want to refuse.

  • saint_al

    @ Renehto, nemoide & Chaorder Gradient: The US Mints have never issued a Penny. They issue Cents.

    /just bein’ technical…

  • justagirl

    i think you just raised the bar for “most annoying comment” recorded.

  • Hadrian999

    this is a blatant attempt by the powerful strippers and pole dancers alliance to restrict the rights of cheapskates.

  • Hadrian999

    this is a blatant attempt by the powerful strippers and pole dancers alliance to restrict the rights of cheapskates.

  • Money

    why stop there?

  • Money

    why stop there?

  • http://twitter.com/jonnyxbrainless Jonathan Goddard

    Arguably, dollar bills are more frequently passed in transactions than, say, a twenty, fifty or hundred dollar bill. As single dollar bills are used in small transactions, for example buying a soda, they get treated more roughly than the higher value bills.
    Here in the UK, we phased out the £1 note in the early 80s; a move also taken by many other countries with their low-denomination notes. This idea is by no means new and does have some benefits.

  • klaus

    so much this.
    can we please get rid of the 1 cent piece already!

  • Johan

    Are you deliberately misunderstanding what he said or just mistaken?

  • Johan

    Are you deliberately misunderstanding what he said or just mistaken?

  • http://hormeticminds.blogspot.com/ Chaorder Gradient

    Not sure what you mean. My point was that in this lovely land of majority rules, where the majority does not read and understand the kinds of points he’s making, those who refuse to obey these perceived “natural” laws of economics will be outcasted, ridiculed or otherwise.

    I guess I spoke a little too hastily and pessimistically though; people are starting to wake up, slowly; hopefully not too slowly though.

  • Butter Knife

    If the government declares money invalid (which is what would happen in your scenario) then people are left to either choose a new money or reinstate it. If they cannot manage this relatively simple transition, then the very notion that they could possibly overthrow the entrenched government is hopeless fantasy anyway.

    I agree that it’s a bad idea, but not for the reason you suggest.

  • Butter Knife

    That’s not the conclusion at all. They’re saying that $1 bills have shorter lifespans than $1 coins, and that $1 is now worth so little that the expense of printing bills in that denomination has become economically silly.

    Basically, it costs the same amount of money to print a $1 bill as a $20 bill, but the latter is worth 20x as much, and therefore better justifies the expense.

  • Bwmmiller

    Canada has one dollar coin, two dollar coin, and needs a five dollar coin. Too much to carry? Hell no silly-ass! Change them up for higher denomination bills as you go! Stores love it, need smaller change! Habits change, out of necessity.

  • Bwmmiller

    Canada has one dollar coin, two dollar coin, and needs a five dollar coin. Too much to carry? Hell no silly-ass! Change them up for higher denomination bills as you go! Stores love it, need smaller change! Habits change, out of necessity.

  • jchadbou

    Money will be phased out completely especially when the government’s back is really up-against the wall.

  • jchadbou

    Money will be phased out completely especially when the government’s back is really up-against the wall.

  • Johan

    It seems to me that you are deliberately misunderstanding what he said in order to make some point.
    We created money. Humans. Us. We invented it. You know what he means by that, I have to assume, yet you pretend that you don’t so that you can disagree with something that he didn’t say.

  • Johan

    Pedantic actually.

  • http://hormeticminds.blogspot.com/ Chaorder Gradient

    Of course I know we as humans in general have created money, as well I know that the “science” of economics is not a field grounded in grand truths but is a human creation. I’m just trying to get across that the power structures out there have incentives to, and probably will try to hold onto this system and frame of thinking, and will try anything to keep it that way.

    Sometimes I like to speak cryptically, but if you want me to put it bluntly, here: Sure we don’t have to obey the current monetary system, we can change it, BUT it will be a difficult road to take (I just cant keep away from speaking in riddles)

  • http://pulse.yahoo.com/_4K3KM67XITZTXUE45K42KS4OEE brian

    5.5 billion over 30 years? Is that even all that much in the whole scheme of the Economy? Sounds like more trouble than it would be worth…though I suppose it would work to redistribute wealth, as countless American’s will undoubtedly accidentally mistake them for quarters, and end up tossing them to Homeless people, or throwing them into wishing wells.

  • http://pulse.yahoo.com/_4K3KM67XITZTXUE45K42KS4OEE brian

    5.5 billion over 30 years? Is that even all that much in the whole scheme of the Economy? Sounds like more trouble than it would be worth…though I suppose it would work to redistribute wealth, as countless American’s will undoubtedly accidentally mistake them for quarters, and end up tossing them to Homeless people, or throwing them into wishing wells.

  • http://pulse.yahoo.com/_4K3KM67XITZTXUE45K42KS4OEE brian

    5.5 billion over 30 years? Is that even all that much in the whole scheme of the Economy? Sounds like more trouble than it would be worth…though I suppose it would work to redistribute wealth, as countless American’s will undoubtedly accidentally mistake them for quarters, and end up tossing them to Homeless people, or throwing them into wishing wells.

  • Bev

    we’ve had $1 coins for years in Australia

  • Bev

    we’ve had $1 coins for years in Australia

  • http://hormeticminds.blogspot.com/ Chaorder Gradient

    Or maybe we should have an RFID chip under our skin that contains our bank account information, so you just have to scan your forehead whenever you make a purchase, and it just skims the money off your account.

    The best part of this would be pesky terrorists, and petty theives, and freedom fighters, and free thinkers, and union organizers ,and annoying children can just have their chip turned off if they get out of line, so we don’t have to deal with them.

  • Anonymous

    And yet, it could be so much more fun

  • http://www.eaglenationalmint.com/Coins/Half-Dollars walking liberty half dollar

    This one is really one of the great information about dollar. And I really like the Liberty Dollar “Architect”. This one is really looking so promising. Well, thanks for the sharing your great information about U.S dollar.

  • Reverendbeatdown

    Keep it coming rex

  • Sleeplessinyourmom

    “I guess I spoke a little too hastily and pessimistically though; people are starting to wake up, slowly; hopefully not too slowly though.” Its called being a judgemental prick… you and andrew do that alot.

  • Andrew

    Reduced to insults, eh?

  • http://hormeticminds.blogspot.com/ Chaorder Gradient

    hey, sometimes i like to be a prick. I tend to reflect the person i’m talking to. Judgmental? Well, ignoring the sting you’re trying to put in there, I do tend read what people say, then judge what kind of person i’m talking to or what kinda ideas they believe… so I guess you could say i’m a little judgmental.. just not in the way you mean.

    In continuing with being a judgemental prick I will say this: I have no idea why that quote you took of me has anything to do with me being a judgmental prick, so your arguments don’t really make any sense (crap… if what you say is nonsense, then why am I wasting time typing this response?)

  • Billary

    Your my favorite jackass.