What Coins SHOULD Be Worth!

Using the "relative worth" calculator provided by measuringworth.com, there are seven (7) different ways to measure the relative worth of money over time. I prefer to use the "Historic Standard of Living" calculator which simply tracks the change in the Consumer Price Index (CPI).

In 1900 (the year my Grandfather was born), one (1) dollar had the equivalent purchasing power of $27.60 today (2011). Using 27.6 as a multiplier, here is a list of coins in circulation in 1900 and their relative purchasing power today...

1¢ - 28¢
5¢ - $1.38
10¢ - $2.76
25¢ - $6.90
50¢ - $13.80
$1 - $27.60
$2.50 - $69.00
$5.00 - $138.00
$10.00 - $276.00
$20.00 - $552.00

Working this the other way (today's coins to 1900 money)...

1¢ - 0.036¢
5¢ - 0.18¢
10¢ - 0.36¢
25¢ - 0.91¢
50¢ - 1.81¢
$1 - 3.6¢

...that's just NUTS! :goofer:

Can you imagine if we had a $552.00 coin today? How many would be minted? How many gems would survive (not be spent)? A US Mint set would have a $2230.88 (P&D) face value...probably sell for $2500/set...how many of those would sell?

I think coin collecting would be a whole lot more interesting if coins had useful values...for commerce (which is the reason they're made...supposedly).

 

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Of course, in 1900 people probably only made $5 a day working, whereas today that same person might make $150. So purchasing power in relation to waged hasn't really changed much at all.
Guy

 

I think coins have very usefull and necessary values as they are presently. Yeah you can't buy anything for a quarter but eliminating coins or having the lowest denomination as a quarter dollar means everything has to be priced in multiples of 25 cents, including taxes.

Perhaps in the future, when we go to a totally cashless society, we'll go there, but I don't think it's anytime soon. Not gonna happen.

 

Exactly!! ...so, why hasn't the value of our coins increased in relation to the increase in our salaries/CPI...as they have in other countries?

In 1900, you could buy quite a few different things for a quarter. I went into a RiteAid pharmacy/convenience store a while back and went through every aisle looking to buy "something" for a quarter...nothing. You can't buy anything for one (1) quarter...you can only get it back in change. That's a problem (imo).

 

That's kind of the point of the "standard of living" yardstick.

I don't think yakpoo's point is not that we're all poor now; it's that today's coins carry a trivial purchasing power. To have coins with the same purchasing power as those of 100 years ago, we should ditch the cent, nickel and dime, and revive the quarter, half, full, and double eagle.

 

That argument just makes no sense (imo)...no personal offense intended. If 25¢ is the lowest coin, vendors simply adjust portions.

Taxes? Let's say you have a 7% sales tax and you buy something for $1...you wouldn't pay a tax. You would only pay a tax over $2...once the tax exceeds 13¢. Sure, you would pay a quarter, but you wouldn't pay another quarter until the tax reaches 38¢. In other words (as compared to now) half the time you would pay less tax and the other half you would pay more...it averages out.

Other countries create new coin denominations as needed. They don't have any problems...why would we?

 

Very well said! :cheers:

 

How do you figure? Today, taxes are rounded -- if the tax rate is 5%, a 1- to 9-cent purchase carries no tax (Staples is selling pencil packs for a penny apiece this weekend!), a 10- to 29-cent purchase carries one cent tax, 30- to 49-cent purchases carry two cents, and so on.

If we ditch the cent and nickel, a 0- to 99-cent purchase would carry no tax, a $1- to $2.99 purchase would carry 10 cents tax, and so on.

Not that I think you're trying to make this point, d.t., but it seems like a lot of people think that when they bought ten $1 items, they'd get charged 10 cents tax on each, rather than 5 cents. And that's just not the way it works.

Individual prices won't have to be rounded, either. Items could still be priced to the cent, just like gasoline is priced to the tenth of a cent per gallon; you'd just do one final rounding for your entire purchase.

 

Thats a good question. I'm not sure theres an answer though.

 

All coins would be worth the same than regardless of condition and nobody would care about coin collecting

 

Not to mention all tpg's would be out of business

 

Once again...a very well written post! :thumb:

 

Occasionally I'll be in a checkout line behind somebody that is buying a bunch of items. It's obvious they're buying for a couple of different people because they'll have the clerk ring up three separate totals.
So, using your example of no taxes under $2, say I needed twenty items from the dollar store and all of them were under $2 each. Are you saying I could have the clerk ring them up and me pay for each item separately that I could then avoid paying taxes altogether?
Maybe I do like your scheme.

 

That might work...if you don't mind the clerk giving you the "stink-eye"!

 

Because to do that the government is showing and admission that we (US) has had inflation. And they don't like admitting that. Yes the inflation is there weather or not we show it in our coins but there is a thought out there that if we move our coins once we will move them more again faster and faster as it's now know that we can do it and will be accepted easier.

Just a thought...

 

Jolly Ranchers are $.05 at the Rite Aid by my house.

 

Politicians (both parties) don't want anyone to know what they're doing to the dollar...

 

Agreed.

And it is not a partisan topic. As far as I'm concerned it's the system, the status quo, the Bildergergs, Groves, Rep's, Dem's... Why? Is if it fails then we ALL loose. So to slow that down they keep the Wizard behind the curtain and don't get rid of the smaller coin until they have to...IMO

 

Ok...I stand corrected. How many do you get for a nickel?