Subject: What does money cost?
Last week, the mint stamped the last pennies. Media talking heads predicted increased demand for nickles. Nickles cost 14 cents to produce. According to the net sifter, historically, the mint has produced over a Billion nickles per year, 1.623 billion were minted in 2020. However, only 112.8 million were produced in 2024. At a rate of 1B nickles per year, at a net loss of 9 cents per coin, dropping the nickle, as per Plan Steve, would save $90M/year. The predicted increased demand for nickles would increase the loss from their production.

The Sacagawea Dollar coin only costs 12.43 cents to make, for a net gain of over 87 cents per coin.

A $1 bill costs 3.2 cents to print, with a service life of 18 months, according to the net sifter, but 7.2 years, according to the Fed. The service life of a Sacagawea coin is 25-30 years. So the coin costs about four times as much to make, and lasts about four times as long, so it's a wash, using the Fed numbers. Given that the bills in my wallet are between 4 and 12 years old, I suspect the Fed number is more accurate.

A quarter costs the mint about 15 cents to make.

A Dime costs a bit under 6 cents to make.

The net sifter says the material cost to make a Sacagawea is a "large" part of the cost of making the coin, but does not know the exact percentage.

Lets wave our magical wand and decree material is 50% of the cost of a Sacagawea.

A Sacagawea weighs 8.1 grams, so material cost, using the SWAG, would be 6.2 cents.

A nickle weighs 5 grams, so material cost, if made from the same material as a Sacagawea would be 3.83 cents. Adding the 6.2 cents of stamping and handling that a Sacagawea costs, would give a total cost of about 10 cents for the half dollar.

So, Plan Steve, following discontinuance of the Penny, is:

Drop the nickle, at a net loss of 9 cents per coin, and increase production of dimes, at a 4 cent gain per coin.

Drop the quarter, produced at a net gain of 10 cents, and replace it with a half dollar, of the same size, but of the same material as the Sacagawea, at a net profit of 40 cents per coin.

Postpone total replacement of the $1 bill with Sacagaweas until pennies and nickles are pretty much gone from circulation, so merchants will have a place to put them, so they won't snivel, like they did when the Susan B came out.

The mint makes money, by making money!

Adjust POS systems to round to one decimal point, instead of two. If a customer cries, remind him that 1: as often as not, rounding will be to his benefit, and 2: a dime now, is worth what a penny was worth, 60 years ago, and no-one cried about registers rounding to two decimal places then.

Steve