Friday, March 4, 2011

The GAO Knows What's Up

This is nothing new, but yet again, the GAO has put out another report on replacing Bad Ones with Good Ones. And, as expected, they state that their findings point toward cost savings for the government.

It's only 41 pages, but if you don't want to read through it, here are some of the key parts:

  1. The estimated savings have been decreasing over time; this is due to the increasing lifespan of Bad Ones. This makes sense.... as the population relies more on plastic and electronic transfer, cash money is used less frequently.
  2. In one of their alternate scenarios, the GAO factored in increased demand for $2 bills, estimating that 25% of dollar demand would convert to demand for Jeffies.
  3. The Mint's own experiments in various cities showed that public acceptance of Good Ones did increase modestly after their pilot programs completed.
  4. Retailers interviewed for the report stated that they would incur higher costs, but couldn't quantify them.
  5. Other countries have made the switch, followed by a short period of public displeasure, then everyone got on with their life.

Will the current push for cutting government spending bring this report to the attention of Congress? Time to start a letter-writing campaign?