I can see everyone who read that title already shaking their heads. There are a couple of personal experience reasons why I think this would be a good idea and you can all take me to task if you think my reasoning is off base. Before you completely dismiss this idea, hear me out. The reason we need a $2 coin – or even better, a $5 coin – is that it will help people save money and we all know that the US saving rate is dismal.
One of the most common ways for people to save money is through a coin jar. While the US does have a $1 coin and a $0.50 coin, these are rarely used making the quarter the highest denomination found in most peoples’ coin jars.
As you know, I’m currently in Canada where they have a $1 and $2 coin. What I’ve noticed is that my pockets have been filling with change many times more valuable than the change I throw into my change jar in the US. For those of you who think that it’s merely a travel phenomenon, I lived in Japan that has the equivalent of a $5 coin and can tell you that when I turned in my change there, my jar was loaded with some serious savings. Those that use a change jar are already in the habit of throwing their coins and that won’t change if the value of the coins increases (again, from my own experience living in Japan).
I know, I know – the US has a dollar coin and we’ve tried it time and again and it has always been a flop. The problem is that we still have the $1 bill. In order for this to work we’d need stop issuing the $1 bill (and $5 if we went with a $5 coin). Then the coins would be forced into circulation as a means of giving change.
What do you think? Would creating a $2 coin a good idea for the US in your opinion?