A Push For Dollar Coins

Could we see the end of
the dollar bill? If the U.S. Mint gets its way we will be welcoming more change
in our pockets. They say the move will save tax payers billions.

The mint says it wants
to replace the paper dollar with a coin. House Financial Services Subcommittee
members toyed with the idea Thursday despite the past failed attempt to make
the coin a popular idea. The Government Accountability Office estimates if the
government made the switch it would save about $4.4 billion, but that's over a
30 year time period.

While vending machine operators love the
idea of a $1 coins, because it won't jam their machines not many people seem
crazy about the idea. In fact $1.4 billion in dollar coins are already piled up
in the Federal Reserve vaults because no one wants to use them. To get people
on board with the controversial switch, the GAO suggested the government spend
nearly $8 million on advertising to convince people it’s the way to go.

The GAO also told members of the
subcommittee after making the switch from paper to metal; it would actually
take several years to see the benefits. That's because new equipment must be
bought to create the coins or old equipment overhauled, and the mint must
produce more coins upfront to replace the bills as they are taken out of
circulation.

The U.S. Mint plans to make a proposal to
Congress next week.

Posted: Friday, November 30 2012, 05:38 PM CST