USA Today ran a short article on how we could save $5.6 Billion by switching from the paper $1 bill to longer lasting $1 coins. (An older Business Week article is here). Just like most other western economies use coins. As a frequent visitor to Canada, I know that Canadians are especially proud of their pretty $1 coin, the Loonie, and reasonably accepting of their $2 coin, the Toonie. I like the British pound £1 coin cause it is hefty and really feels like you have something valuable. So, how does the USA fare with the idea? There's a proposal in Congress, with the cute name "Currency Optimization, Innovation and National Savings (COINS)Act" to replace the $1 bill with a coin.
The original proposals for $1 coins came from Jim Kolbe, R-Ariz. Not because it was a good idea or would save money, but as "a way to help Arizona mining interests". At least he is honest. By now we have two PACs formed, a pro-coin group, the Dollar Coin Alliance, (of which Kolbe is honorary chairman) and an anti-coin Americans for George. The former is supported by mining interests, vending machine companies, and the United Steelworkers Union. You can guess why.
Tom Ferguson, former government employee (Director of the Bureau of Engraving and Printing), probably drawing a large pension, and now a (probably) well-paid consultant and lobbyist, represents Americans for George and claims that "A nation's currency is more than just paper. It is iconic. It is emblematic. It signifies the economy". Other groups oppose the coin. Larry Sabbath of the National Armored Car Association has a valid concern, the increased weight. John Kerry, D-Mass, along with rival Scott Brown, R-Mass, show bipartisanship in opposing the move to coins. Their reasons? All paper for U.S. currency is made in Massachusetts by Crane and Co.
In the grand scheme of things, $5.6 billion isn't that much, but this issue really illustrates the fundamental nature of our current government. Selfishness and Corruption.
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