Kill the Penny? Sure, But Kill the Dollar Bill, First!

By Derek Thompson

The Money ReportThe case against the penny is old and obvious. The cost of making a penny is 25% higher than face value. Vending machines won't even accept them. And as the New Yorker's David Owen famously pointed out, taking seven seconds to bend down and pick up a penny doesn't even keep up with a prorated minimum wage!

But while we're hating on American currency, why not go beyond the penny and abolish the dollar bill? The case, in a nutshell:

Earlier this month, the U.S. Government Accountability Office issued a formal proposal to the Treasury and Federal Reserve noting that if it eliminated the $1 bill and replaced it with the $1 coin, the country could save roughly $5.5 billion during the next 30 years. The reason, according to the agency's report, is that dollar bills have a shorter lifespan than dollar coins because they wear much faster, which in turn requires the government to spend more to print new bills.

Read the full story at Yahoo.

This article available online at:

http://www.theatlantic.com/business/archive/2011/03/kill-the-penny-sure-but-kill-the-dollar-bill-first/73036/