People tend to resist changes. If people have no choice the Dollar Coin will beome the norm.
2007-02-22 20:09:52 · 5 answers · asked by liberty11235 6 in Social Science ➔ Economics
A dollar bill lasts 2 or 3 years. A dollar coin lasts 30. Perhaps the people at the mint need to wake up.
2007-02-22 20:28:59 · update #1
I live in Australia and we have had the dollar coin for more than 20 years. Trust me when I say that once you get them you will think of the dollar bill as a pain in the ***. It's so much better. We even have a $2.00 coin. Wonderful invention.
2007-02-22 20:19:59 · answer #1 · answered by biancajh 5 · 0⤊ 0⤋
Switching from a dollar bill to a dollar coin does make sense on many levels. For instance, a dollar coin is more durable. It lasts much longer than a paper currency would. Another reason a switch to a dollar coin is a good idea is that it is a more real currency. If the US no longer backed its currency (which is highly unlikely to occur any time soon), the currency would have no value except that of which it is made of. Metals are worth more than paper, so if the currency were evaluated on its value in terms of substance, a coin would be a more logical choice.
Now, having said that, let me buy back the idea that we should switch to coins. Here are a few reasons that it is unlikely to happen. Dollars are fairly commonly used in the US. Some people carry a great many $1 in their pocket. Imagine if these all suddenly changed to coins. Those individuals would be carrying around a great deal more weight.
Another reason against it is the current infrastructure. Many vending type machines accept dollar bills. Most don't accept dollar coins. If dollar bills were eliminated, a great deal of money would have to be spent to change the types of coins that these machines could take. This is just a small example, but it could have consequences in any coin operated apparatus that currently accepts dollar bills.
One other quick observation is that if the number of coins increases, the demand for the metal to make these coins will drive up the price of the metals. Since these metals are used in other industries as well, there could be some inflation simply from the switch to the coins. This could have some negative effects on the economy. The paper money does not have quite the same impact as the metal would.
Thus, the dollar bill has more demand in the economy because it is easier to use than its coin counterpart. Until the ease of use of the coin becomes the same as the bill, it is unlikely to be a popular choice to switch to it. While possible, it could take many years to smoothly transition.
2007-02-23 03:30:33 · answer #2 · answered by theeconomicsguy 5 · 0⤊ 0⤋
I dont think so because most people hate to jingle, or cary around coins, so i do not think that people would rather cary around dollar coins when a dollar bill is the weight of a feather and can be put with the 2's 5's 10's 20's 50's and 100's easily.
2007-02-22 20:15:28 · answer #3 · answered by chris_aka_big_red 2 · 0⤊ 0⤋
well yes of course they would be more accepting to the dollar coin if the dollar bill did not exist. take europe, with the euro money. if you want to pay less than 5 euros ( about 6.25 dollars), you must get out your coin purse. so yes, we coudl do that, have lots of coins. but its odd that the governmetn woudl want to spend money making coins which have more substance than bills.
2007-02-22 20:20:27 · answer #4 · answered by lonesome me 4 · 0⤊ 0⤋
the battle is on the wrong principal~
we want more dollars bills not less
2007-02-22 20:20:36 · answer #5 · answered by bev 5 · 0⤊ 0⤋