Hi,
Indeed. Neither the metallic value nor the production cost have anything to do with the nominal value of a coin. Minting coins from a cheap material, say aluminum, would make more sense than keeping the copper, nickle, silver -- especially since those aren't really used anyway.
However, let me join the ranks of those who would like to see the penny and nickle (and quarter) removed from circulation. The total inflation from 1913 to now is about 2200%. A penny then is about the equivalent of 22 cents now. We really don't need that fine a graduation of money. As to the quarter, since it is worth 25 cents, and since the objective is not only to get rid of small denomination change, but also to go to 1/10 of a dollar as the smallest increment, it has to go. It could be replaced by a 20 cent coin, but doesn't really need to be replaced at all. We've long made do with pennies and nickles, a factor of five. Dimes and halves would simply replace them.
--Pete
(09-10-2010, 06:09 PM)Jester Wrote: They're produced for their social utility as currency.
Indeed. Neither the metallic value nor the production cost have anything to do with the nominal value of a coin. Minting coins from a cheap material, say aluminum, would make more sense than keeping the copper, nickle, silver -- especially since those aren't really used anyway.
However, let me join the ranks of those who would like to see the penny and nickle (and quarter) removed from circulation. The total inflation from 1913 to now is about 2200%. A penny then is about the equivalent of 22 cents now. We really don't need that fine a graduation of money. As to the quarter, since it is worth 25 cents, and since the objective is not only to get rid of small denomination change, but also to go to 1/10 of a dollar as the smallest increment, it has to go. It could be replaced by a 20 cent coin, but doesn't really need to be replaced at all. We've long made do with pennies and nickles, a factor of five. Dimes and halves would simply replace them.
--Pete
How big was the aquarium in Noah's ark?