The One Dollar Bill Might Be Here to Stay
In order to save the country some money, the U.S. Government Accountability Office has issued on five different occasions a formal proposal to the Treasury and Federal Reserve announcing that the $1 bill should be replaced with the $1 coin.
That hasn't happened, but if it had, the country could have saved about $5.5 billion over the next 30 years or $522 million each year.
There are organizations trying to prevent the replacement of the $1 paper bill, and there are organizations trying to get the $1 coin.
A big advantage of the $1 coin is that it will help your "loose change" grow faster.
Disadvantages of the $1 Coin
How could the $1 coin save the country money? The $1 bill has a shorter lifespan because it wears out faster. Therefore, the government has to spend more money to print $1 bills.
These are some of the things that will happen if the $1 bill is phased out. Even though the $1 coin will be worth the same as the old $1 bill, psychologically people will believe that it isn't worth more. Therefore, McDonald's might eliminate its Dollar Menu and take it to the lowest bill denomination in circulation which will be $5. That would not be good for consumers.
People will forget who George Washington was because they will not see him almost every time they open their wallet.
Eliminating the $1 bill will be good for churches. Parishioners will be forced to give the lowest bill in their wallet. So, the church will get 4 extra dollars in the offering plate.
If you give a small child a $1 coin for his birthday, he will think you have cheated him; therefore, you will feel so guilty that you will give him a $5 bill instead.
These examples show it might save the country money, but it certainly won't save the individuals money.
Strippers will complain that they have no place to put the $1 coin.
Vending machines all over the country will have to be re-designed to accept the $1 coin instead of the $1 bill that they are already accepting.
What about the weight in your pocket or purse? A $1 coin is indeed much heavier than a $ bill. The $1 coin will certainly add weight to purses and pockets. Besides a $1 coin will probably look and feel too much like a quarter. Remember we have tried the Susan B. Anthony dollar, the silver dollar, and the large Eisenhower dollar. They all failed.
Can you see people at the check-out counter fumbling in their purses or pockets for 25 or more of the $1 coins?
What impact would a $1 coin have on the Dollar Store, Dollar General, Family Dollar, and Dollar Tree? Would these stores still sell items for the lowest denomination? If so, expect their names to change.
As advertisers and shoppers know, it really is not the money or the value of the money that provokes people to purchase items. It has a lot to do with the psychological aspect. It is what people think. And if people were given a choice, they would choose the $1 bill over the $1 coin.
Don't worry about this proposal because it has been proposed before. This is the fourth time during the last twenty years. And if it does happen, it will take a four-year transition period to eliminate all the $1 bills. So, there is no need to hoard your $1 bills.
Everyone has gotten comfortable with the $1 bill, and it is probably here to stay.