Does the U.S. Government make money from minting dollar coins rather than dollar bills?

Question

For example, if it costs $1 for each dollar bill but only 20 cents for each dollar coin, does the government then make 80 cents on each new coin? I say no but a friend says yes.

Answer 1

The total cost of producing and processing coins and currency could be reduced by substituting dollar coins for dollar notes because the long-run annual cost of a coin is lower than the corresponding cost of a note. A dollar coin would cost about 8 cents to produce, which is more than twice the 3.8 cents that it costs to produce a dollar note. The higher initial cost of the coin is more than offset, however, by its significantly longer useful life (30 years versus 1.5 years). In addition, the costs to the government of maintaining the quality and integrity of coins are lower than they are for notes, which must be inspected individually for fitness and counterfeits.

Most of the government's savings would come from the interest on financing the debt that the Treasury would avoid from seigniorage(the difference between the face value of a coin and the coin's cost of production). While seigniorage itself has no impact on the size of the current budget deficit, it does reduce the amount of money that must be borrowed from the public to finance the deficit. Therefore, the amount of interest it saves does reduce future budget outlays and deficits.

Answer 2

you're honestly proper--i have spent a lot of time in the united kingdom and Canada, and considered precisely how nicely the money artwork. there is yet another element to evaluate even as it includes value cost reductions as well. formerly the recession, the Bureau of Engraving and Printing flora in Washington, DC, and feet.fairly worth, TX were operating at fairly close to to means. even as there are some issues they could do to enhance means in the winning flora, it really is honestly no longer that many years after the commercial equipment recovers that, if we shop printing dollar costs, we are going to opt to construct a 0.33 multi-billion facility to shop up with call for. Drop the dollar bill and turn to a dollar coin, and the winning flora have sufficient means for the foreseeable destiny. so some distance because the "stripper" argument is going, previous the obtrusive element that someone continuously thinks they are being smart with assistance from stating stripper's assistance, there is this: once you're tipping with ones, you're both in the incorrect position, or a great tightwad. Stick a crowbar in the wallet, tip with fives, and also you get a lot more advantageous powerful provider. The dollar buys what 1 / 4 ought to in about 1970, and _nobody_ again then replaced into putting forward how a lot more advantageous accessible it should be if we at a $.25 bill. no individual ought to have suggested "nicely, what if i have were given to carry $50? Having to apply quarters will be too heavy!" because it truly is what fives, tens, Nineteen Twenties, Nineteen Fifties and 1000's are for--so that you do not could carry round 2 hundred of something.

Answer 3

the government is also trying to make dollar coins because coins last more than dollar bills. It costs more for the gov't to constantly print out new dollar bills to replace the old, torn ones. By making coins, they will be profitting because coins lasts longer