On July 25, 2011, Representative David Schweikert (R-AZ) introduced HR 2635, the COINS Act of 2011 to the House of Representatives. The bill proposes a switch from the dollar bill to the dollar coin, but unlike previous attempts to implement this change, the COINS Act mandates the removal of all dollar bills from circulation as well as the circulation of the Presidential dollar coin. Advocates of this act claim the switch from the dollar bill to the dollar coin would save the US $5.6 billion over thirty years…seems like a win-win situation right? Wrong.
Like most initiatives proposed in Congress, advocates of the COINS Act have alternative motives for passing this bill—the mining industry. The dollar coin’s strongest supporters, Schweikert, Senator Jon Kyl, and former Representative Jim Kolbe, also happen to represent the state of Arizona. Schwiekert’s constituency in Arizona is one of the nation’s most profitable mining states, producing over 65% of the nation’s total copper output and raking in over $9.2 billion direct and indirect funds for the state. The elements of the dollar coin, which is 88.5% copper, 6% zinc, 3.5% manganese and 2% nickel, are all mined and exported from the state of Arizona.
While these figures alone are no cause for concern, the variable prices of these metals are. The numbers put forth by the Government Accountability Office (GAO) surrounding the projected savings by the COINS Act neglect to mention how the price of the metals used to make them have increased substantially over the past ten years. The price of copper per pound hit a record high of $457 in February of this year, over a 700% increase from the price per pound in 2001, and the price continues to fluctuate but has yet to fall below $350 since January 2008. Comparatively, the price of zinc has risen by over 100% in the past ten years and nickel by over 250%.
The supporters of this bill are not looking to save American taxpayers money; they are looking to boost Arizona’s economy. This act proposes a change that would allegedly save taxpayers billions over the course of thirty years, but what has been left in the dark are the inconsistencies associated with the bill. Even without considering the costs of producing, transferring, distributing, storing and managing dollar coins, the GAO estimate shows the dollar coin would cost the government and taxpayer’s money in the first four years and would not break even for at least the next 10 years.
This bill is an obvious attempt to help the already thriving mining industry that provides Schweikert’s constituents with $2.6 billion in personal incomes, $6.15 billion in business sales and $468 million in state and local government income. By eliminating the dollar bill, Schweikert will bring a stimulus to his state at the expense of the federal government and American citizens. Thus far this bill has flown under the guise that it will help to bring the country out of debt when in reality it will do nothing but hurt the government, businesses and citizens for the next ten years. The dollar coin has been pushed before and has failed to catch on, and with good reason—they are inconvenient, expensive and an utter waste of Congress’s time.
