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All that Congressmen claim glitters is not necessarily goldBy JGillman, Section News
Let me start by telling Michigan Congressmen and Super Committee members Dave Camp and Fred Upton--I am not yelling (or typing, rather) at you--I am yelling (yeah, typing) to you.
"Balancing the budget" by killing the dollar bill and forcing Americans to carry little burlap bags full of dollar coins like it is the 12th century, not the 21st? I know this is RightMichigan.com, not 30 Rockefeller Center, but... Seriously? According to Roll Call, that's the proposal being floated by a "Republican" Congressman from Arizona by the name of Dave Schweikart. (Because the last time Republicans followed the lead of an Arizonan it worked out so well. (ZING!)) Schweikart (pictured at right swimming in cold, hard home-state-mined cash) claims that burning all the paper money and forcing Americans to use those gold colored copper one-dollar coins (you know, the ones you immediately hand back to the cashier or the bank teller asking for "real money" every time she tries to hand it to you?) will help balance the budget by saving less than $200 million a year. Coins are more durable, the argument goes, so they'd last longer and cost less to reproduce. Yeah they last longer. Because they sit in the bottom of our sock drawers since you'd have to lug around eight pounds of metal to buy a freaking Big Mac! The American people have had the option -paper or coin--for years. We've chosen lighter pockets and fewer trips to the chiropractor. Camp and Upton sit on the powerful Super Committee and have not yet provided any clear inclination that they back this expensive, onerous, poorly thought out bit of cow-towing to Arizonan special interests (I'll get there, bear with me), but its just a sneakily stupid enough of an idea I figured it'd be worth raising the red flag. Please read more below the fold.
Seriously, now, let's take a look at the idea the good Congressman from Arizona is presenting to the Super Committee as a way to help "balance the budget." The Arizonan says the switch to Sacagawea will save $184 million a year. Golden (colored) idea. We're good conservatives--we like saving money.
Alas for Schweikart, we're not also idiots. According to the Government Accounting Office (GAO) any savings from the switch won't be seen for at least ten years. The Super Committee he's appealing to is tasked with cutting $1.5 TRILLION in spending by the time the U.S. Treasury would stand to finally save its first copper dollar. Not much of a help there, is it, even if the dubious savings are in fact finally realized two or three Presidents down the road. So that's a timing problem. There's a math problem, too. Two of them even. A not insignificant chunk of the U.S. economy is set-up and equipped to handle paper dollars, not coins. Many businesses rely on machines that accept George Washington but don't know the Native American translator from Lewis or Clark. The change would, in essence, represent a tax hike on these businesses as they are forced to conform to the newer, heavier, unwieldy norm. The Super Committee is supposed to help trim the government, not make it more onerous. The second math problem for the Congressman--because folks have already spoken on coin dollars and decline every day to use them, it is estimated that replacing the current 9.5 billion dollar bills would require 14.25 billion dollar coins in order to maintain a proper circulation of currency. In other words, we're talking $4.75 billion in new upfront costs just to create the surplus coins. Hardly cutting into the deficit that way, are we? So what's Schweikart's deal? Creating 14.25 billion new coins is going to require a lot of new metal. I'll give you two guesses where the mines that supply that metal are located but you'll only need one. Ah, Arizona. So here we are with Schweikart's proposal on the table. Camp, Upton and the rest of the Super Committee have a choice. They can strap coin bags to each of our belts and pray to Heaven that the world of fashion continues its retro-trend and harkens us back to the 60s--the 1160s--or it can ignore this special interest nonsense and focus on real cuts to real big-government spending programs that will save real taxpayers real dollars. Whatever they're made of.
All that Congressmen claim glitters is not necessarily gold | 13 comments (13 topical, 0 hidden)
All that Congressmen claim glitters is not necessarily gold | 13 comments (13 topical, 0 hidden)
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