I would suggest that another factor caused this problem: The weakening of the dollar. This is the same problem the Holy Roman Empire faced about 2000 years ago, when the "solution" was to clip the coins, so that the quantity of valuable metal in the coin was reduced.
An additional factor is that the world's largest supplier of nickel is Russia. Most US allies have had sanctions against Russia for the past 4 years. This has reduced the free supply of nickel available to those nations.
You begged DJT to pardon your friend that his OWN personal lawyer now a Judge helped convict of drug trafficking the investigation started under Trump not Biden you are disgusting he was sentenced to 45 years well guess DJT is now going to stop blowing up boats given he clearly does not care about drug trafficking or did you fail to mention the drug trafficking part to DJT when you begged him to pardon your drug trafficking friend. Trump is threatening to bomb Venezuela over alleged drug trafficking, but then he issued a full pardon for the ex president of Honduras Juan Hernandez who was found guilty by an American jury last year of conspiring to import 400 tons of cocaine and arms smuggling into the U.S. My personal opinion.
I get it, but 17 million is not that terrible price to pay to continue to have a more accurate money unit. Getting rid of the penny was very useful, it’s very easy to round up or down to the nearest nickel.
Also, the nickel could be remade to be the size of a penny. Maybe that’s the good interim solution.
How about making the coin as cheaply as the dime? Can be done.
Inflation slowly devalues the real wealth of the people.
This is an issue addressed in the 1810 Bullion Debates by two great minds in economics--David Ricardo and Henry Thornton. Nobel Laureate Milton Friedman revived the debate when claiming that "inflation is always and everywhere a monetary phenomenon", which requires the 'quantity theory of money', and Friedman and Anna Schwartz went to great lengths in choosing the time period and data to prove the velocity of money was/is stable in the "long run."
Friedman and Schwartz then correctly surmised that the Federal Reserve's actions in 1931 resulted in the Great Depression, when the FED should have been increasing the money supply rather than tightening. Ben Bernanke thought funding auxiliary credit markets was the correct path, as per his '80s research, but failed in 2007 when repeating the mistakes of 1931. I was a consultant for Bear Stearns in 2007, having developed a model of asset pricing for housing that was used on their trading floor. I can't believe Bernanke was so hell bent on proving his research was correct as to crash the market, but that is what happened. So why did Ben get a Nobel for making so many mistakes? Nobels in Economic Sciences are supposed to be for research that has proven to be immensely valuable over several decades. Ben proved Friedman and Schwartz were correct and he was wrong.
Ditching the penny made sense and was fairly easy, maybe ‘cause its next year. Ditching the nickel is likely another great idea. After all the dime is more like the old penny in term of spending power. Inflation (devaluation) has eroded the dollar greatly. Wonder if we will get back 500$ bills?
We will not get back $500s or higher denominations - the government likes cash to be small so that large capital movements are tracable.
An alternative to phasing out the coins is to issue a new currency. If the new buck buys 20 old bucks, then the new penny, nickel, dime, etc. are useful units of exchange again. Do some judicious design of the new coins for less expensive manufacture (and introduce $1 and $2 coins). The $5, with the buying power of 100 old dollars, can now have all the security features of the old $100 bill.
Sadly, the alternative we are getting is the digitization of all money. They're trying very, very hard to make money a ledger entry. The problem with money as a ledger entry is that it is then very easy to trace, tax, and confiscate.
I remember that large bills were stopped because of drugs. Apparently a suitcase of cocaine results in several suitcases of cash making the transaction more difficult.
Overseas in the military I encountered military script money even paper bills for $0.10! They also could cancel an issue and replace with a new issue. Cumbersome but I suppose made black market transactions harder.
A new dollar issue of physical currency does make sense but we probably get digital money first.
I would suggest that another factor caused this problem: The weakening of the dollar. This is the same problem the Holy Roman Empire faced about 2000 years ago, when the "solution" was to clip the coins, so that the quantity of valuable metal in the coin was reduced.
An additional factor is that the world's largest supplier of nickel is Russia. Most US allies have had sanctions against Russia for the past 4 years. This has reduced the free supply of nickel available to those nations.
First it was the Penny, and now the nickel, and what’s next…
And funny how in an age of surveillance no one can figure out who the real Bitcoin inventor is and what happened to him..
Erode the old system and usher in the new and the control and enslavement gov’t wants is here..
Nothing new under the sun..
As the old saying goes, "more trouble than it’s worth."
What if we made them with what pennies were made from? Also make pennies from a cheaper steel.
You begged DJT to pardon your friend that his OWN personal lawyer now a Judge helped convict of drug trafficking the investigation started under Trump not Biden you are disgusting he was sentenced to 45 years well guess DJT is now going to stop blowing up boats given he clearly does not care about drug trafficking or did you fail to mention the drug trafficking part to DJT when you begged him to pardon your drug trafficking friend. Trump is threatening to bomb Venezuela over alleged drug trafficking, but then he issued a full pardon for the ex president of Honduras Juan Hernandez who was found guilty by an American jury last year of conspiring to import 400 tons of cocaine and arms smuggling into the U.S. My personal opinion.
I get it, but 17 million is not that terrible price to pay to continue to have a more accurate money unit. Getting rid of the penny was very useful, it’s very easy to round up or down to the nearest nickel.
Also, the nickel could be remade to be the size of a penny. Maybe that’s the good interim solution.
USA MINT ITS OWN. LEGAL TENDER PHYSICAL….DUMP THE USURY
How about making the coin as cheaply as the dime? Can be done.
Inflation slowly devalues the real wealth of the people.
This is an issue addressed in the 1810 Bullion Debates by two great minds in economics--David Ricardo and Henry Thornton. Nobel Laureate Milton Friedman revived the debate when claiming that "inflation is always and everywhere a monetary phenomenon", which requires the 'quantity theory of money', and Friedman and Anna Schwartz went to great lengths in choosing the time period and data to prove the velocity of money was/is stable in the "long run."
Friedman and Schwartz then correctly surmised that the Federal Reserve's actions in 1931 resulted in the Great Depression, when the FED should have been increasing the money supply rather than tightening. Ben Bernanke thought funding auxiliary credit markets was the correct path, as per his '80s research, but failed in 2007 when repeating the mistakes of 1931. I was a consultant for Bear Stearns in 2007, having developed a model of asset pricing for housing that was used on their trading floor. I can't believe Bernanke was so hell bent on proving his research was correct as to crash the market, but that is what happened. So why did Ben get a Nobel for making so many mistakes? Nobels in Economic Sciences are supposed to be for research that has proven to be immensely valuable over several decades. Ben proved Friedman and Schwartz were correct and he was wrong.
Ditching the penny made sense and was fairly easy, maybe ‘cause its next year. Ditching the nickel is likely another great idea. After all the dime is more like the old penny in term of spending power. Inflation (devaluation) has eroded the dollar greatly. Wonder if we will get back 500$ bills?
We will not get back $500s or higher denominations - the government likes cash to be small so that large capital movements are tracable.
An alternative to phasing out the coins is to issue a new currency. If the new buck buys 20 old bucks, then the new penny, nickel, dime, etc. are useful units of exchange again. Do some judicious design of the new coins for less expensive manufacture (and introduce $1 and $2 coins). The $5, with the buying power of 100 old dollars, can now have all the security features of the old $100 bill.
Sadly, the alternative we are getting is the digitization of all money. They're trying very, very hard to make money a ledger entry. The problem with money as a ledger entry is that it is then very easy to trace, tax, and confiscate.
I remember that large bills were stopped because of drugs. Apparently a suitcase of cocaine results in several suitcases of cash making the transaction more difficult.
Overseas in the military I encountered military script money even paper bills for $0.10! They also could cancel an issue and replace with a new issue. Cumbersome but I suppose made black market transactions harder.
A new dollar issue of physical currency does make sense but we probably get digital money first.