2006-07-24 14:47:21 · 7 answers · asked by brianmacnikon 1 in Business & Finance ➔ Other - Business & Finance
The official reason was for vending machines.
At the time(1999) NYC started to Mterocard in the subway and the only give back change in dollar coin so they quickly used up the government supplies.
Soon other vending machines companies called for more dollar coins as snack food prices increase.
Although the coins are considered a failure there are plenty floating around to keep vending machines full.
2006-07-25 09:17:43 · answer #1 · answered by Man 6 · 2⤊ 0⤋
The government is trying to do the right thing, but chickens out. A dollar coin makes money for the government since it effectively lasts forever, (almost no coins are redeemed by the government), so we make a profit with each one made. Paper money has to be replaced every 18 months on average, so we lose money with every one made. ALL countries that switch to coins for the equivalent of about a dollar, (Canada, UK, Australia, etc. etc.) do so by doing away with the bill of the same denomination at the same time. If you do that, everyone accepts the coins and things move on. Our politicians do not have the guts, so the dollar coin always fails in the US.
2006-07-27 04:03:30 · answer #2 · answered by medoraman 3 · 0⤊ 0⤋
We going into inflation meaning that what the $1 value 20 years ago is not the same usage as nowaday. As you notice, the Congress is planning to phase out the pennies. Therefore you will see in your near future more $100 bills floating around because the $1 will most likely become the value of the quarter or dime.
During the Great Depression, my grandmother told me that the rent was only $50 per month. To me, that would be heaven because my rent is more than $500 per month.
2006-07-24 15:17:48 · answer #3 · answered by SweetBrunette 5 · 0⤊ 0⤋
I bought a $5 subway pass last week with a $10 bill and got five $1 coins back. It sucked but makes sense.
2006-07-24 14:53:12 · answer #4 · answered by Rick 3 · 0⤊ 0⤋
Coins last longer then paper bills, thus being more cost effective... thus saving money when compared to producing bills over a period of time.
They trying to save money... In Canada they have up to the $2 coin.
Loonie and toonie they are called... crazy Canadians....
Doesn't the penny / 1 cent costs 2 cents to produce? Crazy governments...
2006-07-24 14:53:19 · answer #5 · answered by UTNeflyte 2 · 0⤊ 0⤋
It lasts longer than paper money.
2006-07-24 14:50:02 · answer #6 · answered by windyy 5 · 0⤊ 0⤋
So it would rattle in your pocket and you would think you had alot of money...........
2006-07-24 14:52:15 · answer #7 · answered by ole_lady_93 5 · 0⤊ 0⤋