Some in Washington are focussed on what can be done to reduce the U.S. government’s budget. Earlier this month, the U.S. Government Accountability Office issued a formal proposal to the Treasury and Federal Reserve to eliminate the $1 bill and replace it with the $1 coin. The GAO estimates that the elimination of the $1 bill will save the country $5.5 billion during the next 30 years. The reason is that dollar bills have a shorter life than dollar coins, as bills tend to wear faster and need to be replaced more often.
The proposal indicates that the transition would take 4 years. During this transition, the government would have to invest in producing new coins. After the transition, the government would save approximately $522 million each year. When given a choice, Americans prefer the dollar bills over dollar coins.
This proposal begs the question; how many other government expenditures can be reduced by simple changes?