Malo periculosam, libertatem quam quietam servitutem.



June 2011

Leave it to Government to Find a Way to Make Money that No One Wants

Written by , Posted in Economics & the Economy, Waste & Government Reform

This is the kind of story where the jokes write themselves (from NPR via Greg Mankiw):

The money — bags and bags of dollar coins — is the result of a 2005 law that requires the U.S. Mint to print a series of coins bearing the likeness of each U.S. president.

The problem is, people don’t really like dollar coins. And there aren’t enough people who are fired up about, say, Rutherford B. Hayes, to make much of a difference.

So more than 1 billion dollar coins are now sitting, unwanted, in Federal Reserve vaults around the country. By the time the program wraps up in 2016, the Fed will be sitting on 2 billion unwanted coins, according to the Fed’s own estimates.

The total cost to manufacture those unwanted coins: $600 million.

$600 millions dollars worth of resources extracted from the economy to produce 2 billion coins that no one wants. Let’s just call this the anti-stimulus.