Leave it to the federal government to find new ways to lose taxpayer money. They can even lose money when they’re making the money, literally.
A recent Coin News article goes into detail:
It’s costing more to make U.S. coins for circulation. Unit costs climbed for every denomination, the United States Mint disclosed in its 2017 Annual Report, and the cost of making cents and nickels remained above their face values for a twelfth year in a row.
It now costs DC 1.82 cents to make a penny and 6.6 cents to make a nickel. It costs more than their face value to mint these coins. Over the past 12 years, the federal government has lost a total of $895 million minting pennies and nickels.
If they know they’re losing money, why don’t The Feds simply discontinue pennies and nickels?
The three main reasons: corruption, sentimentality, and a lack of motivation.
Corruption is DC’s middle name. Pennies and nickels are made from zinc, nickel, and copper. The politicians who have zinc, nickel, and copper mines in their districts receive donations from the corporations who benefit from having contracts with the US Mint. I’m sure you can fill in the rest of that story. Americans know about DC corruption all too well.
On to sentimentality. When most of us see a penny or a nickel on the ground, we’d rather kick it or just walk right past it. However, some people have a deep heartfelt connection to those devalued pieces of metal.
More than anything, DC politicians and bureaucrats have absolutely no motivation to save taxpayer money. It’s not their money they’re wasting, after all. They can pay for the loses by raising taxes, borrowing money, or debasing the currency.
I’m sure most of our readers are way ahead of me on this one. The Federal Reserve System has been debasing the currency since its inception in 1913. Dollars are more
accurately know as Federal Reserve Notes (FRNs). They have lost 96% of their value since The Fed was created. That means an item purchased for $1 in 1913 would cost $25.15 in today’s devalued money.
US currency laws state that FRNs are “legal tender for all debts, public charges, taxes, and dues”. This makes it very difficult for businesses and local governments to get away from using FRNs.
How can NH be released from this debased currency? One way is New Hampshire independence. As soon as NH is a sovereign territory, she no longer has to be abused by a city that stopped caring about her long ago. DC and all of their corruption and legal tender laws will be a thing of the past.