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No dollar bill? Coin lobbyists will cost us all
Hello
Interesting article below. Nothing was brough up on Seigniorage (inflation tax) that is taken into account when making money. Seigniorage derived from coins arises from the difference between the face value of a coin and the cost of producing, distributing and eventually retiring it from circulation. I posted the story below on Friday, November 28, 2008. The date on the story is "Sunday, November 30, 2008" I cannot explain that on the date of the story. Maybe the story is for the Atlanta Journal Sunday paper. -------------------------------------- FROM: http://www.ajc.com/opinion/content/o...ered_1130.html No dollar bill? Coin lobbyists will cost us all By RICHARD MINITER Sunday, November 30, 2008 The $700 billion price tag of the Wall Street bailout has induced an understandable uproar from the American public. Taxpayers are right to be concerned about Congress doling out such a sizable chunk of change - and skeptical of the justifications proffered by politicians. But all too often, at the behest of well-connected special interests, lawmakers are able to sneak hugely expensive projects right past voters. In just the past couple of years, Congress has appropriated $1.2 million to study the breeding habits of woodchucks, $2 million to build an ancient Hawaiian canoe and nearly $20 million to analyze gas emissions from cow flatulence. And right now, at the behest of powerful lobbyists, lawmakers have embarked upon another misadventure with millions of taxpayer dollars - they're attempting to convince us that we should replace the dollar bill with a dollar coin. Last year, the U.S. Mint unveiled the Presidential Dollar Coin Series, pledging to introduce four new coins every year. So far the coins haven't caught on - a Harris Interactive poll from March found that a whopping 76 percent of Americans prefer a dollar bill to a coin. But production of the coins continues. The groups pushing for the series include metal producers and the National Automatic Merchandising Association (NAMA), which represents vending machine manufacturers. NAMA's members expect their operational costs to drop dramatically if dollar coins are the norm. Since coins tend to take up less room inside machines than bills, collection personnel can make fewer stops at vending sites. The metal industry's interest in the coins is obvious. In making their case, the groups have decided that their best move is to try and convince lawmakers that taxpayers will save money if the government produces coins instead of bills. Problem is, their case blatantly misrepresents the facts. At a July hearing held by the House Financial Services subcommittee, NAMA President Richard Geerdes claimed that a switch to dollar coins would save "the American taxpayers at least $600 million a year." But this year, according to the Federal Reserve, the entire budget for printing all U.S. currency is $578.5 million. So unless Geerdes is actually advocating the elimination of the nation's entire monetary system, it's safe to say that his figure came out of thin air. But wait - don't coins last longer than paper notes? Won't they therefore save at least some money? Not really. For starters, the lifespan of the average bill increased from 18 to 22 months over the past eight years - and that figure continues upward. As the disparity between how long a coin lasts and how long a bill lasts decreases, cost savings drop. Also, the cost of producing coins has been skyrocketing. The penny now costs 1.9 cents to produce, and the nickel 9.8 cents. The cost of producing a dollar coin has doubled in the last decade. Finally, according to both the Congressional Budget Office and Federal Reserve, it actually takes at least two coins to replace one paper bill. Coins are more likely to get dropped from circulation by individual consumers than are bills. Think of all the coins rattling around that jar on your dresser or underneath the cushions of your couch. As a 1993 survey from the U.S. Government Accountability Office noted, people "consider coins heavier to carry than notes, as well as bulky and awkward." No kidding. Despite these realities, the government is burning through millions on the dollar coin program. Between 1998 and 2001, the Feds spent $67 million promoting the Sacagawea dollar - ultimately to no avail. A 2001 GAO study found that the Sacagawea dollar was being used in less than 1 percent of all dollar transactions. The pro-coin lobbying push is not only bad for taxpayers; it also undermines the interests of the vending-machine operators whom NAMA claims to represent. Today, more Americans are using credit cards than ever before. Instead of pushing for dollar coins, NAMA should be encouraging its members to invest in technology to allow credit card purchases at vending machines. Time and again, Americans have indicated that they just don't want to use dollar coins. Yet at the behest of special interests, the federal government persists in spending millions trying to convince us that we should. This campaign for change is costing taxpayers dearly. It's time for lawmakers to use a little common sense and say, "no thanks" to the dollar coin. Richard Miniter is a fellow at the Hudson Institute. ... |
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No dollar bill? Coin lobbyists will cost us all
"Arizona Coin Collector" wrote in message m... Hello Interesting article below. Nothing was brough up on Seigniorage (inflation tax) that is taken into account when making money. Seigniorage derived from coins arises from the difference between the face value of a coin and the cost of producing, distributing and eventually retiring it from circulation. I posted the story below on Friday, November 28, 2008. The date on the story is "Sunday, November 30, 2008" I cannot explain that on the date of the story. Maybe the story is for the Atlanta Journal Sunday paper. -------------------------------------- FROM: http://www.ajc.com/opinion/content/o...ered_1130.html No dollar bill? Coin lobbyists will cost us all By RICHARD MINITER Sunday, November 30, 2008 The $700 billion price tag of the Wall Street bailout has induced an understandable uproar from the American public. Taxpayers are right to be concerned about Congress doling out such a sizable chunk of change - and skeptical of the justifications proffered by politicians. But all too often, at the behest of well-connected special interests, lawmakers are able to sneak hugely expensive projects right past voters. In just the past couple of years, Congress has appropriated $1.2 million to study the breeding habits of woodchucks, $2 million to build an ancient Hawaiian canoe and nearly $20 million to analyze gas emissions from cow flatulence. And right now, at the behest of powerful lobbyists, lawmakers have embarked upon another misadventure with millions of taxpayer dollars - they're attempting to convince us that we should replace the dollar bill with a dollar coin. Last year, the U.S. Mint unveiled the Presidential Dollar Coin Series, pledging to introduce four new coins every year. So far the coins haven't caught on - a Harris Interactive poll from March found that a whopping 76 percent of Americans prefer a dollar bill to a coin. But production of the coins continues. The groups pushing for the series include metal producers and the National Automatic Merchandising Association (NAMA), which represents vending machine manufacturers. NAMA's members expect their operational costs to drop dramatically if dollar coins are the norm. Since coins tend to take up less room inside machines than bills, collection personnel can make fewer stops at vending sites. The metal industry's interest in the coins is obvious. In making their case, the groups have decided that their best move is to try and convince lawmakers that taxpayers will save money if the government produces coins instead of bills. Problem is, their case blatantly misrepresents the facts. At a July hearing held by the House Financial Services subcommittee, NAMA President Richard Geerdes claimed that a switch to dollar coins would save "the American taxpayers at least $600 million a year." But this year, according to the Federal Reserve, the entire budget for printing all U.S. currency is $578.5 million. So unless Geerdes is actually advocating the elimination of the nation's entire monetary system, it's safe to say that his figure came out of thin air. But wait - don't coins last longer than paper notes? Won't they therefore save at least some money? Not really. For starters, the lifespan of the average bill increased from 18 to 22 months over the past eight years - and that figure continues upward. As the disparity between how long a coin lasts and how long a bill lasts decreases, cost savings drop. Also, the cost of producing coins has been skyrocketing. The penny now costs 1.9 cents to produce, and the nickel 9.8 cents. The cost of producing a dollar coin has doubled in the last decade. Finally, according to both the Congressional Budget Office and Federal Reserve, it actually takes at least two coins to replace one paper bill. Coins are more likely to get dropped from circulation by individual consumers than are bills. Think of all the coins rattling around that jar on your dresser or underneath the cushions of your couch. As a 1993 survey from the U.S. Government Accountability Office noted, people "consider coins heavier to carry than notes, as well as bulky and awkward." No kidding. Despite these realities, the government is burning through millions on the dollar coin program. Between 1998 and 2001, the Feds spent $67 million promoting the Sacagawea dollar - ultimately to no avail. A 2001 GAO study found that the Sacagawea dollar was being used in less than 1 percent of all dollar transactions. The pro-coin lobbying push is not only bad for taxpayers; it also undermines the interests of the vending-machine operators whom NAMA claims to represent. Today, more Americans are using credit cards than ever before. Instead of pushing for dollar coins, NAMA should be encouraging its members to invest in technology to allow credit card purchases at vending machines. Time and again, Americans have indicated that they just don't want to use dollar coins. Yet at the behest of special interests, the federal government persists in spending millions trying to convince us that we should. This campaign for change is costing taxpayers dearly. It's time for lawmakers to use a little common sense and say, "no thanks" to the dollar coin. Richard Miniter is a fellow at the Hudson Institute. I wonder who the Hudson institute represents? Credit cards in a vending machine? Yeah,, giving 4%-5% to CC card companies is going to save.......NOT. The writer is uninformed or has an agenda. mk |
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No dollar bill? Coin lobbyists will cost us all
"Arizona Coin Collector" wrote in message m... Hello Interesting article below. Nothing was brough up on Seigniorage (inflation tax) that is taken into account when making money. Seigniorage derived from coins arises from the difference between the face value of a coin and the cost of producing, distributing and eventually retiring it from circulation. I posted the story below on Friday, November 28, 2008. The date on the story is "Sunday, November 30, 2008" I cannot explain that on the date of the story. Maybe the story is for the Atlanta Journal Sunday paper. -------------------------------------- FROM: http://www.ajc.com/opinion/content/o...ered_1130.html No dollar bill? Coin lobbyists will cost us all By RICHARD MINITER Sunday, November 30, 2008 The $700 billion price tag of the Wall Street bailout has induced an understandable uproar from the American public. Taxpayers are right to be concerned about Congress doling out such a sizable chunk of change - and skeptical of the justifications proffered by politicians. But all too often, at the behest of well-connected special interests, lawmakers are able to sneak hugely expensive projects right past voters. In just the past couple of years, Congress has appropriated $1.2 million to study the breeding habits of woodchucks, $2 million to build an ancient Hawaiian canoe and nearly $20 million to analyze gas emissions from cow flatulence. And right now, at the behest of powerful lobbyists, lawmakers have embarked upon another misadventure with millions of taxpayer dollars - they're attempting to convince us that we should replace the dollar bill with a dollar coin. Last year, the U.S. Mint unveiled the Presidential Dollar Coin Series, pledging to introduce four new coins every year. So far the coins haven't caught on - a Harris Interactive poll from March found that a whopping 76 percent of Americans prefer a dollar bill to a coin. But production of the coins continues. The groups pushing for the series include metal producers and the National Automatic Merchandising Association (NAMA), which represents vending machine manufacturers. NAMA's members expect their operational costs to drop dramatically if dollar coins are the norm. Since coins tend to take up less room inside machines than bills, collection personnel can make fewer stops at vending sites. The metal industry's interest in the coins is obvious. In making their case, the groups have decided that their best move is to try and convince lawmakers that taxpayers will save money if the government produces coins instead of bills. Problem is, their case blatantly misrepresents the facts. At a July hearing held by the House Financial Services subcommittee, NAMA President Richard Geerdes claimed that a switch to dollar coins would save "the American taxpayers at least $600 million a year." But this year, according to the Federal Reserve, the entire budget for printing all U.S. currency is $578.5 million. So unless Geerdes is actually advocating the elimination of the nation's entire monetary system, it's safe to say that his figure came out of thin air. But wait - don't coins last longer than paper notes? Won't they therefore save at least some money? Not really. For starters, the lifespan of the average bill increased from 18 to 22 months over the past eight years - and that figure continues upward. As the disparity between how long a coin lasts and how long a bill lasts decreases, cost savings drop. Also, the cost of producing coins has been skyrocketing. The penny now costs 1.9 cents to produce, and the nickel 9.8 cents. The cost of producing a dollar coin has doubled in the last decade. Finally, according to both the Congressional Budget Office and Federal Reserve, it actually takes at least two coins to replace one paper bill. Coins are more likely to get dropped from circulation by individual consumers than are bills. Think of all the coins rattling around that jar on your dresser or underneath the cushions of your couch. As a 1993 survey from the U.S. Government Accountability Office noted, people "consider coins heavier to carry than notes, as well as bulky and awkward." No kidding. Despite these realities, the government is burning through millions on the dollar coin program. Between 1998 and 2001, the Feds spent $67 million promoting the Sacagawea dollar - ultimately to no avail. A 2001 GAO study found that the Sacagawea dollar was being used in less than 1 percent of all dollar transactions. The pro-coin lobbying push is not only bad for taxpayers; it also undermines the interests of the vending-machine operators whom NAMA claims to represent. Today, more Americans are using credit cards than ever before. Instead of pushing for dollar coins, NAMA should be encouraging its members to invest in technology to allow credit card purchases at vending machines. Time and again, Americans have indicated that they just don't want to use dollar coins. Yet at the behest of special interests, the federal government persists in spending millions trying to convince us that we should. This campaign for change is costing taxpayers dearly. It's time for lawmakers to use a little common sense and say, "no thanks" to the dollar coin. Richard Miniter is a fellow at the Hudson Institute. My kinda fellow, that Richard! I always enjoy an article that supports my personal view and debunks the opposition. Whether these figures are accurate or not, who's to say for sure, but they're worth a second look. |
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No dollar bill? Coin lobbyists will cost us all
"MJKolodziej" wrote in message owncomputing... "Arizona Coin Collector" wrote in message m... Hello Interesting article below. Nothing was brough up on Seigniorage (inflation tax) that is taken into account when making money. Seigniorage derived from coins arises from the difference between the face value of a coin and the cost of producing, distributing and eventually retiring it from circulation. I posted the story below on Friday, November 28, 2008. The date on the story is "Sunday, November 30, 2008" I cannot explain that on the date of the story. Maybe the story is for the Atlanta Journal Sunday paper. -------------------------------------- FROM: http://www.ajc.com/opinion/content/o...ered_1130.html No dollar bill? Coin lobbyists will cost us all By RICHARD MINITER Sunday, November 30, 2008 The $700 billion price tag of the Wall Street bailout has induced an understandable uproar from the American public. Taxpayers are right to be concerned about Congress doling out such a sizable chunk of change - and skeptical of the justifications proffered by politicians. But all too often, at the behest of well-connected special interests, lawmakers are able to sneak hugely expensive projects right past voters. In just the past couple of years, Congress has appropriated $1.2 million to study the breeding habits of woodchucks, $2 million to build an ancient Hawaiian canoe and nearly $20 million to analyze gas emissions from cow flatulence. And right now, at the behest of powerful lobbyists, lawmakers have embarked upon another misadventure with millions of taxpayer dollars - they're attempting to convince us that we should replace the dollar bill with a dollar coin. Last year, the U.S. Mint unveiled the Presidential Dollar Coin Series, pledging to introduce four new coins every year. So far the coins haven't caught on - a Harris Interactive poll from March found that a whopping 76 percent of Americans prefer a dollar bill to a coin. But production of the coins continues. The groups pushing for the series include metal producers and the National Automatic Merchandising Association (NAMA), which represents vending machine manufacturers. NAMA's members expect their operational costs to drop dramatically if dollar coins are the norm. Since coins tend to take up less room inside machines than bills, collection personnel can make fewer stops at vending sites. The metal industry's interest in the coins is obvious. In making their case, the groups have decided that their best move is to try and convince lawmakers that taxpayers will save money if the government produces coins instead of bills. Problem is, their case blatantly misrepresents the facts. At a July hearing held by the House Financial Services subcommittee, NAMA President Richard Geerdes claimed that a switch to dollar coins would save "the American taxpayers at least $600 million a year." But this year, according to the Federal Reserve, the entire budget for printing all U.S. currency is $578.5 million. So unless Geerdes is actually advocating the elimination of the nation's entire monetary system, it's safe to say that his figure came out of thin air. But wait - don't coins last longer than paper notes? Won't they therefore save at least some money? Not really. For starters, the lifespan of the average bill increased from 18 to 22 months over the past eight years - and that figure continues upward. As the disparity between how long a coin lasts and how long a bill lasts decreases, cost savings drop. Also, the cost of producing coins has been skyrocketing. The penny now costs 1.9 cents to produce, and the nickel 9.8 cents. The cost of producing a dollar coin has doubled in the last decade. Finally, according to both the Congressional Budget Office and Federal Reserve, it actually takes at least two coins to replace one paper bill. Coins are more likely to get dropped from circulation by individual consumers than are bills. Think of all the coins rattling around that jar on your dresser or underneath the cushions of your couch. As a 1993 survey from the U.S. Government Accountability Office noted, people "consider coins heavier to carry than notes, as well as bulky and awkward." No kidding. Despite these realities, the government is burning through millions on the dollar coin program. Between 1998 and 2001, the Feds spent $67 million promoting the Sacagawea dollar - ultimately to no avail. A 2001 GAO study found that the Sacagawea dollar was being used in less than 1 percent of all dollar transactions. The pro-coin lobbying push is not only bad for taxpayers; it also undermines the interests of the vending-machine operators whom NAMA claims to represent. Today, more Americans are using credit cards than ever before. Instead of pushing for dollar coins, NAMA should be encouraging its members to invest in technology to allow credit card purchases at vending machines. Time and again, Americans have indicated that they just don't want to use dollar coins. Yet at the behest of special interests, the federal government persists in spending millions trying to convince us that we should. This campaign for change is costing taxpayers dearly. It's time for lawmakers to use a little common sense and say, "no thanks" to the dollar coin. Richard Miniter is a fellow at the Hudson Institute. I wonder who the Hudson institute represents? Credit cards in a vending machine? Yeah,, giving 4%-5% to CC card companies is going to save.......NOT. No different than at the gas pump, and there aren't many station owners willing to forego that % by accepting only cash. Everyone who touches that gallon of gasoline gets a cut of the final pump price. Why not a bit for the CC companies, too for the convenience they offer? Ditto with credit card-accepting vending machines. The writer is uninformed or has an agenda. From what I see, everyone who expounds on this issue has an agenda, or at least a firm opinion. You apparently have one. So do I. Most of the coin vs bill cost saving arguments seem to be based on projections, which are usually no more reliable than football game predictions. |
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No dollar bill? Coin lobbyists will cost us all
"MJKolodziej" wrote in message owncomputing... I wonder who the Hudson institute represents? Credit cards in a vending machine? Yeah,, giving 4%-5% to CC card companies is going to save.......NOT. The writer is uninformed or has an agenda. mk I never took account about charges (intrest), on Credit card use from the story. |
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No dollar bill? Coin lobbyists will cost us all
"Bruce Remick" wrote in message ... "MJKolodziej" wrote in message owncomputing... "Arizona Coin Collector" wrote in message m... Hello Interesting article below. Nothing was brough up on Seigniorage (inflation tax) that is taken into account when making money. Seigniorage derived from coins arises from the difference between the face value of a coin and the cost of producing, distributing and eventually retiring it from circulation. I posted the story below on Friday, November 28, 2008. The date on the story is "Sunday, November 30, 2008" I cannot explain that on the date of the story. Maybe the story is for the Atlanta Journal Sunday paper. -------------------------------------- FROM: http://www.ajc.com/opinion/content/o...ered_1130.html No dollar bill? Coin lobbyists will cost us all By RICHARD MINITER Sunday, November 30, 2008 The $700 billion price tag of the Wall Street bailout has induced an understandable uproar from the American public. Taxpayers are right to be concerned about Congress doling out such a sizable chunk of change - and skeptical of the justifications proffered by politicians. But all too often, at the behest of well-connected special interests, lawmakers are able to sneak hugely expensive projects right past voters. In just the past couple of years, Congress has appropriated $1.2 million to study the breeding habits of woodchucks, $2 million to build an ancient Hawaiian canoe and nearly $20 million to analyze gas emissions from cow flatulence. And right now, at the behest of powerful lobbyists, lawmakers have embarked upon another misadventure with millions of taxpayer dollars - they're attempting to convince us that we should replace the dollar bill with a dollar coin. Last year, the U.S. Mint unveiled the Presidential Dollar Coin Series, pledging to introduce four new coins every year. So far the coins haven't caught on - a Harris Interactive poll from March found that a whopping 76 percent of Americans prefer a dollar bill to a coin. But production of the coins continues. The groups pushing for the series include metal producers and the National Automatic Merchandising Association (NAMA), which represents vending machine manufacturers. NAMA's members expect their operational costs to drop dramatically if dollar coins are the norm. Since coins tend to take up less room inside machines than bills, collection personnel can make fewer stops at vending sites. The metal industry's interest in the coins is obvious. In making their case, the groups have decided that their best move is to try and convince lawmakers that taxpayers will save money if the government produces coins instead of bills. Problem is, their case blatantly misrepresents the facts. At a July hearing held by the House Financial Services subcommittee, NAMA President Richard Geerdes claimed that a switch to dollar coins would save "the American taxpayers at least $600 million a year." But this year, according to the Federal Reserve, the entire budget for printing all U.S. currency is $578.5 million. So unless Geerdes is actually advocating the elimination of the nation's entire monetary system, it's safe to say that his figure came out of thin air. But wait - don't coins last longer than paper notes? Won't they therefore save at least some money? Not really. For starters, the lifespan of the average bill increased from 18 to 22 months over the past eight years - and that figure continues upward. As the disparity between how long a coin lasts and how long a bill lasts decreases, cost savings drop. Also, the cost of producing coins has been skyrocketing. The penny now costs 1.9 cents to produce, and the nickel 9.8 cents. The cost of producing a dollar coin has doubled in the last decade. Finally, according to both the Congressional Budget Office and Federal Reserve, it actually takes at least two coins to replace one paper bill. Coins are more likely to get dropped from circulation by individual consumers than are bills. Think of all the coins rattling around that jar on your dresser or underneath the cushions of your couch. As a 1993 survey from the U.S. Government Accountability Office noted, people "consider coins heavier to carry than notes, as well as bulky and awkward." No kidding. Despite these realities, the government is burning through millions on the dollar coin program. Between 1998 and 2001, the Feds spent $67 million promoting the Sacagawea dollar - ultimately to no avail. A 2001 GAO study found that the Sacagawea dollar was being used in less than 1 percent of all dollar transactions. The pro-coin lobbying push is not only bad for taxpayers; it also undermines the interests of the vending-machine operators whom NAMA claims to represent. Today, more Americans are using credit cards than ever before. Instead of pushing for dollar coins, NAMA should be encouraging its members to invest in technology to allow credit card purchases at vending machines. Time and again, Americans have indicated that they just don't want to use dollar coins. Yet at the behest of special interests, the federal government persists in spending millions trying to convince us that we should. This campaign for change is costing taxpayers dearly. It's time for lawmakers to use a little common sense and say, "no thanks" to the dollar coin. Richard Miniter is a fellow at the Hudson Institute. I wonder who the Hudson institute represents? Credit cards in a vending machine? Yeah,, giving 4%-5% to CC card companies is going to save.......NOT. No different than at the gas pump, and there aren't many station owners willing to forego that % by accepting only cash. Everyone who touches that gallon of gasoline gets a cut of the final pump price. Why not a bit for the CC companies, too for the convenience they offer? Ditto with credit card-accepting vending machines. Different in that the smaller purchases a vendor can lose a much higher percentage. A gas purchase, if you fill from near empty and be from $25 to $75. A vending machine may be as low as 50 cents. My current CC processor charges ..20 Plus 1.39% and that's just for the lower tier cards, business cards can be as much as .20 plus 3.49%. How much do you usually spend at a vending machine? mk |
#7
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No dollar bill? Coin lobbyists will cost us all
"Arizona Coin Collector" wrote in message ... "MJKolodziej" wrote in message owncomputing... I wonder who the Hudson institute represents? Credit cards in a vending machine? Yeah,, giving 4%-5% to CC card companies is going to save.......NOT. The writer is uninformed or has an agenda. mk I never took account about charges (intrest), on Credit card use from the story. Charges would not be felt by the customer any more than they're felt at any other place that accepts credit cards. Any fee is calculated into the final price along with any number of other factors. And just think of the cost savings with credit card-only vending machines-- no need for coin and bill collections and change restocking. No matter what the cost of the vended item, most people would always have the means to pay at hand. |
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No dollar bill? Coin lobbyists will cost us all
"Bruce Remick" wrote in message ... "Arizona Coin Collector" wrote in message ... "MJKolodziej" wrote in message owncomputing... I wonder who the Hudson institute represents? Credit cards in a vending machine? Yeah,, giving 4%-5% to CC card companies is going to save.......NOT. The writer is uninformed or has an agenda. mk I never took account about charges (intrest), on Credit card use from the story. Charges would not be felt by the customer any more than they're felt at any other place that accepts credit cards. Any fee is calculated into the final price along with any number of other factors. And just think of the cost savings with credit card-only vending machines-- no need for coin and bill collections and change restocking. No matter what the cost of the vended item, most people would always have the means to pay at hand. It has been my observaton that vending machines don't always give what you ask for. Depending on were your at, getting a refund may not be quick and easy. Unless of couse the vending machine is set up to back out the charge if it notices that the product did not move out. .. |
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No dollar bill? Coin lobbyists will cost us all
"MJKolodziej" wrote in message owncomputing... "Bruce Remick" wrote in message ... "MJKolodziej" wrote in message owncomputing... "Arizona Coin Collector" wrote in message m... Hello Interesting article below. Nothing was brough up on Seigniorage (inflation tax) that is taken into account when making money. Seigniorage derived from coins arises from the difference between the face value of a coin and the cost of producing, distributing and eventually retiring it from circulation. I posted the story below on Friday, November 28, 2008. The date on the story is "Sunday, November 30, 2008" I cannot explain that on the date of the story. Maybe the story is for the Atlanta Journal Sunday paper. -------------------------------------- FROM: http://www.ajc.com/opinion/content/o...ered_1130.html No dollar bill? Coin lobbyists will cost us all By RICHARD MINITER Sunday, November 30, 2008 The $700 billion price tag of the Wall Street bailout has induced an understandable uproar from the American public. Taxpayers are right to be concerned about Congress doling out such a sizable chunk of change - and skeptical of the justifications proffered by politicians. But all too often, at the behest of well-connected special interests, lawmakers are able to sneak hugely expensive projects right past voters. In just the past couple of years, Congress has appropriated $1.2 million to study the breeding habits of woodchucks, $2 million to build an ancient Hawaiian canoe and nearly $20 million to analyze gas emissions from cow flatulence. And right now, at the behest of powerful lobbyists, lawmakers have embarked upon another misadventure with millions of taxpayer dollars - they're attempting to convince us that we should replace the dollar bill with a dollar coin. Last year, the U.S. Mint unveiled the Presidential Dollar Coin Series, pledging to introduce four new coins every year. So far the coins haven't caught on - a Harris Interactive poll from March found that a whopping 76 percent of Americans prefer a dollar bill to a coin. But production of the coins continues. The groups pushing for the series include metal producers and the National Automatic Merchandising Association (NAMA), which represents vending machine manufacturers. NAMA's members expect their operational costs to drop dramatically if dollar coins are the norm. Since coins tend to take up less room inside machines than bills, collection personnel can make fewer stops at vending sites. The metal industry's interest in the coins is obvious. In making their case, the groups have decided that their best move is to try and convince lawmakers that taxpayers will save money if the government produces coins instead of bills. Problem is, their case blatantly misrepresents the facts. At a July hearing held by the House Financial Services subcommittee, NAMA President Richard Geerdes claimed that a switch to dollar coins would save "the American taxpayers at least $600 million a year." But this year, according to the Federal Reserve, the entire budget for printing all U.S. currency is $578.5 million. So unless Geerdes is actually advocating the elimination of the nation's entire monetary system, it's safe to say that his figure came out of thin air. But wait - don't coins last longer than paper notes? Won't they therefore save at least some money? Not really. For starters, the lifespan of the average bill increased from 18 to 22 months over the past eight years - and that figure continues upward. As the disparity between how long a coin lasts and how long a bill lasts decreases, cost savings drop. Also, the cost of producing coins has been skyrocketing. The penny now costs 1.9 cents to produce, and the nickel 9.8 cents. The cost of producing a dollar coin has doubled in the last decade. Finally, according to both the Congressional Budget Office and Federal Reserve, it actually takes at least two coins to replace one paper bill. Coins are more likely to get dropped from circulation by individual consumers than are bills. Think of all the coins rattling around that jar on your dresser or underneath the cushions of your couch. As a 1993 survey from the U.S. Government Accountability Office noted, people "consider coins heavier to carry than notes, as well as bulky and awkward." No kidding. Despite these realities, the government is burning through millions on the dollar coin program. Between 1998 and 2001, the Feds spent $67 million promoting the Sacagawea dollar - ultimately to no avail. A 2001 GAO study found that the Sacagawea dollar was being used in less than 1 percent of all dollar transactions. The pro-coin lobbying push is not only bad for taxpayers; it also undermines the interests of the vending-machine operators whom NAMA claims to represent. Today, more Americans are using credit cards than ever before. Instead of pushing for dollar coins, NAMA should be encouraging its members to invest in technology to allow credit card purchases at vending machines. Time and again, Americans have indicated that they just don't want to use dollar coins. Yet at the behest of special interests, the federal government persists in spending millions trying to convince us that we should. This campaign for change is costing taxpayers dearly. It's time for lawmakers to use a little common sense and say, "no thanks" to the dollar coin. Richard Miniter is a fellow at the Hudson Institute. I wonder who the Hudson institute represents? Credit cards in a vending machine? Yeah,, giving 4%-5% to CC card companies is going to save.......NOT. No different than at the gas pump, and there aren't many station owners willing to forego that % by accepting only cash. Everyone who touches that gallon of gasoline gets a cut of the final pump price. Why not a bit for the CC companies, too for the convenience they offer? Ditto with credit card-accepting vending machines. Different in that the smaller purchases a vendor can lose a much higher percentage. A gas purchase, if you fill from near empty and be from $25 to $75. A vending machine may be as low as 50 cents. I haven't seen many vending machines that sell stuff for less than a dollar anymore. And at the gas pump, I look at the price on the sign and never calcualte how much might be going to the credit card company. I do use a card at the pump, but only because I get a 5% rebate. I guess that offsets any hidden credit card fee. My current CC processor charges .20 Plus 1.39% and that's just for the lower tier cards, business cards can be as much as .20 plus 3.49%. Merchants must feel these charges are offset by increased business or they wouldn't play the credit game. I'd bet a gas station in a competitive area that wouldn't accept credit cards wouldn't last a year before going out of business. How much do you usually spend at a vending machine? I haven't used a vending machine in years. Talk about willingly getting ripped off for the sake of convenience! Hard to figure that people who buy stuff in vending machines would be too upset paying a couple more cents to a credit card company for a little more convenience. |
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No dollar bill? Coin lobbyists will cost us all
"Arizona Coin Collector" wrote in message m... "Bruce Remick" wrote in message ... "Arizona Coin Collector" wrote in message ... "MJKolodziej" wrote in message owncomputing... I wonder who the Hudson institute represents? Credit cards in a vending machine? Yeah,, giving 4%-5% to CC card companies is going to save.......NOT. The writer is uninformed or has an agenda. mk I never took account about charges (intrest), on Credit card use from the story. Charges would not be felt by the customer any more than they're felt at any other place that accepts credit cards. Any fee is calculated into the final price along with any number of other factors. And just think of the cost savings with credit card-only vending machines-- no need for coin and bill collections and change restocking. No matter what the cost of the vended item, most people would always have the means to pay at hand. It has been my observaton that vending machines don't always give what you ask for. Depending on were your at, getting a refund may not be quick and easy. Unless of couse the vending machine is set up to back out the charge if it notices that the product did not move out. How would you get a refund if a coin machine spits out a grape instead of the orange you selected? I would imagine that a credit card machine would not register the charge until "something" was dispensed. I'm guessing here, but that's how I would envision it working. If not, simply call up the CC company like you would if you got screwed on an internet purchase. Maybe that's one reason why I avoid using vending machines. |
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