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<p>[QUOTE="Numbers, post: 3360847, member: 11668"]Makes sense as regards the cent, but your math is way off as regards the dollar bill.</p><p><br /></p><p>There are no "billions of already-struck dollar coins". The Fed's stockpile of dollar coins is only 1.14 billion coins, down from a peak of 1.44 billion six years ago. At that rate, it's big enough to meet demand for dollar coins for another couple of decades--but it's nowhere close to big enough to replace all the paper $1 bills in circulation (over 12 billion, and growing by about 0.4 billion per year).</p><p><br /></p><p>Base metals cost more than they used to, and paper dollars last longer than they used to. The combination of these two factors means that, while replacing the $1 note by a $1 coin could have saved us money in the '80s or '90s, it's actually been a money-losing proposition since about 2011.</p><p><br /></p><p>(Data from <a href="https://www.federalreserve.gov/paymentsystems/coin_data.htm" target="_blank" class="externalLink ProxyLink" data-proxy-href="https://www.federalreserve.gov/paymentsystems/coin_data.htm" rel="nofollow">here</a> and <a href="https://www.federalreserve.gov/paymentsystems/files/staff-working-paper-20131211.pdf" target="_blank" class="externalLink ProxyLink" data-proxy-href="https://www.federalreserve.gov/paymentsystems/files/staff-working-paper-20131211.pdf" rel="nofollow">here</a>.)[/QUOTE]</p><p><br /></p>
[QUOTE="Numbers, post: 3360847, member: 11668"]Makes sense as regards the cent, but your math is way off as regards the dollar bill. There are no "billions of already-struck dollar coins". The Fed's stockpile of dollar coins is only 1.14 billion coins, down from a peak of 1.44 billion six years ago. At that rate, it's big enough to meet demand for dollar coins for another couple of decades--but it's nowhere close to big enough to replace all the paper $1 bills in circulation (over 12 billion, and growing by about 0.4 billion per year). Base metals cost more than they used to, and paper dollars last longer than they used to. The combination of these two factors means that, while replacing the $1 note by a $1 coin could have saved us money in the '80s or '90s, it's actually been a money-losing proposition since about 2011. (Data from [URL='https://www.federalreserve.gov/paymentsystems/coin_data.htm']here[/URL] and [URL='https://www.federalreserve.gov/paymentsystems/files/staff-working-paper-20131211.pdf']here[/URL].)[/QUOTE]
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