MINTED COINS....PRESIDENT OBAMA...ELIMINATE THEM AND...SAVE $$$$

By
Real Estate Broker Owner with People first then business! Ran Right Realty Riverside, Ca BRE LIC #00636943

I originally wanted to do a post on the subject of how expensive it is to have and use coins and it led me to realize how the government spends (and acts) irresponsibly. Then, there was so much data on the subject matter and I wanted to keep it short for a post. So, I am leaving a lot out, combining TWO points and leaving enough room for comments......

What it costs to make the following:

PENNIES.......to make a penny or 1.38 cents...........NICKLES......to make a nickel or 8.83 cents

To manufacture the pennies and nickels per year causes a loss $100 million a year. This is due to the cost of the metals that go into them. Of course the people who sell the materials to the government lobby yearly to keep it going. When they need or want to increase their  companies PRO-FOR-MA, they just raise the rates and we (the gov) pays it. Congress listens more to them and less to us.

PENNIES ARE SO WORTHLESS...WE LOSE ONE MILLION DOLLARS A DAY IN PENNIES EVERYWHERE ON PURPOSE

Do you pick up a penny when you see one? Have you noticed how people leave them behind for others at the check-out stand? Do you know that when cashiers balance a drawer, they often skip the penny count? If we eliminated the penny, we could just round off UP or DOWN.....it so simple.

Look how much time is wasted in giving change, storing change, counting change, and saving change. It doesn't make....dare I say it....CENTS.......?....

Before you go blaming the U.S. Mint, stop and take some time out. CONGRESS has the power to make the change...why don't they? Why would we allow losses to go on? Good business practices produce reliable results. Then, after that, just apply the rule of better, faster, and cheaper as the traditional business motivators and everybody wins.......

The U.S. Mint has been losing money since 2003. Post office loses money and is getting worse every year even after they raise rates. We have a serious problem in our government....IT IS CALLED LEAKAGE......

HERE'S A THOUGHT: We have people guarding the outside of the U.S MINT. Perhaps we really need someone guarding the inside. We are being robbed from the inside...not the outside. If fact, the robbers have a key to the place.

Here is the whole point:.....we need to save money in our government and... especially during this recession. Start with the penny elimination and then move on to the nickel. When you do the math and project for 5-10 years out, you are talking hundreds of millions of dollars (or more) of savings and a great deal more with tweaking.

Do this with everything the government manages and we wont have another headline about SOCIAL SECURITY shortages (nonsense), Post office running in the red, medicare increases, lack of unemployment funds, and lack of health-care funds and all the rest of it. 

Without having to investigate, we know if you pick any governmental department, you will find unbelievable waste and if you add it all up, there is probably enough money there to send every one a check every month for a lifetime.

Congress knows all this and... year after year there is no change (pun?). Instead, the governmental cows get fatter and fatter and the people are told; we need more of your money via taxes to survive......NOT 

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Topic:
ActiveRain Community
Location:
California
Tags:
us mint
government
pennies
nickels
waste
social security
coins
saving money
us post office
congress

Comments 17 New Comment

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Rainmaker
1,113,779
Richie Alan Naggar Author PEARLS SERIES of books
on LIFE and LOVE plus Real Estate too!
People first then business! Ran Right Realty Riverside, Ca

Rob....well done and you have said it only........ the literal translation kills you off in the end in this case. throwing good money after bad because we are too lazy or because a few "control" the hidden opportunity is not right. Most excellent comment............thank you Rob.....

August 17, 2010 06:04 PM
Rainer
74,958
Bruce Breedlove
Avalon Inspection Services

I'm not sure where you got your information of a loss of $100 million ($100,000,000) each year from making cents and nickels. Coin Update News (http://news.coinupdate.com/us-mint-cost-to-produce-the-penny-and-nickel-0137/) states for Fiscal Year 2009:

"In the most recent fiscal year, the US Mint lost a combined 22 million on production of the cent and nickel. The gains from other denominations more than made up for this amount. Last year, the United States Mint shipped a total of $777.6 million in circulating coins, which earned $427.8 million in seigniorage."

So the Mint lost $22 million on cents and nickels but made a profit (seigniorage) on other denominations (and collector coins) to show a profit of over $400 million.

The federal deficit was $1.42 trillion in 2009. $22,000,000 is a drop in the bucket compared to $1,420,000,000,000. (0.00155% to be exact.) I think there are much bigger holes that should be plugged before we discontinue production of the cent and nickel.

 

September 14, 2010 02:31 AM
Rainmaker
1,113,779
Richie Alan Naggar Author PEARLS SERIES of books
on LIFE and LOVE plus Real Estate too!
People first then business! Ran Right Realty Riverside, Ca

Bruce....first off...thank you for visiting with me and for your most valued comment. Your information is compelling and bears some respect. My sources were the Internet. The profit and losses fluctuate year to year because the costs of the metal and ores fluctuate as well. This is where the lobbyists keep a careful grip on what they are doing. They have enough sense to know to lower their prices and back-off and.... when to raise them all to the tune of carefully orchestrated political posturing....so, while your figures may be accurate (like mine were), they do change yearly. In regards to cutting governement expenses,  start everywhere and anywhere. Trimming pennies adds up to big dollars at the end of the year no matter what business you are in. You and I both know about the HOG fat when it comes to government spending and controlling costs. Lastly my friend, I am surprised that you didn't address the nuisance factor that I raised. I thought that was quite relevant. Very good input and most welcomed point of view........best to you Bruce....

September 14, 2010 09:29 AM
Rainer
74,958
Bruce Breedlove
Avalon Inspection Services

Richie, I appreciate the "nuisance factor" that cents represent but I think cents still serve a useful purpose in commerce. Eliminating the cent and rounding to the nearest 5 cents sounds simple but I foresee problems. I'm sure the rounding will go in favor of the merchant the majority of the time. And, based on my experience, many people (especially young people) do not have a firm enough grasp of math for me to trust them with rounding. I suppose cash registers could be retooled to do the rounding. (Most cashiers depend on the cash register to do all the computations already.)

The coin collector in me hates to see the cent discontinued. The cent is the only US coin that has been continuously produced since the Mint opened in the early 1790s. The first cent (a Large Cent) was minted in 1793 and has been produced every year since then except for 1815. A fire at the Mint and the War of 1812 prevented the Mint from striking Cents that year. (The copper used to strike cents came from England with whom we were at war.) I, for one, think it would be a shame to discontinue the cent. No other coin has an (almost) uninterrupted presence during the entire history of the US monetary system.

September 14, 2010 01:40 PM
Rainmaker
1,113,779
Richie Alan Naggar Author PEARLS SERIES of books
on LIFE and LOVE plus Real Estate too!
People first then business! Ran Right Realty Riverside, Ca

Bruce.....I am compelled to honor your comment again...I am always learning new things and I have learned a lot from you today. How can I even argue against the passion of a coin collector and one who know the subject...admittedly, better than I.....Your last paragraph stands well with me. As to your first paragraph....unless the cash registers are programmed to round off, you will be able to see whether the one working cash registered liked math or not. I have seen it untold times. The have to check the register to refund 13 cents....very sad testimony to math, the individual and the teaching system(or all three).

Bruce....we pay taxes into the systems all year long and I want premium back in return. Waste does not sit well with me....When I hear about perks being given to law-makers, I get worked up because there is nothing I can do about that. But where we can cut back, we must because taxing people up until their death doesn't sit well with me and I am sure tens of millions of others either. That is my main point......thanks again Bruce for telling it like it is.....and give that young man in your picture the right tools so that he can do great things.

Best again

September 14, 2010 02:19 PM
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Rainmaker
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Richie Alan Naggar Author PEARLS SERIES of books

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