09-10-2010, 06:09 PM
(09-10-2010, 05:02 PM)Maitre Wrote: To be perfectly honest, I can't disagree with the premise that any denomination more expensive to produce than it is worth is a prime candidate for removal...
They mention this in the video, and you mention it here. But I don't understand. Coins are not minded for their seignorage rents, at least, not this century. They're produced for their social utility as currency. A nickel will surely generate more than 9 cents worth of use in its total lifetime circulation. The argument for replacing it is that will generate even more in costs, from people having to carry them around and make change with them. The fact that its face value is 5 cents is almost irrelevant.
If you were just concerned about production costs, you'd print $1000 dollar bills until you ran out of ink.
-Jester