From editorial “Endangered bill”:
…”You see, it costs 18 cents to produce each $1 coin as opposed to 5.5 cents to produce each $1 bill. So, where are the savings?
“That comes through seignorage — that is the difference between the cost of producing coins or notes and their face value. It costs 18 cents to produce a $1 coin which is “sold” to the consumer for $1, thereby netting a profit.”
WATCHDOG: But if it costs only 5.5 cents to print a dollar bill, it nets an even bigger profit.
We agree with the both the further explanation of savings and that dollar coins should replace dollar bills. We were just bemused by the above.
