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Should the US Mint Get Out of the Coin Manufacturing Business

5 posts in this topic

Point: Get Government Out of Coin Manufacture

"Coin dealers and collectors are still reeling from the U.S. Mint's announcement that it had run out of American Eagle gold coins. But what ought to surprise every American isn't that a government agency came up short. It's that the U.S. government should be making little metal discs at all."

 

Counterpoint: Hamilton was Right in Creating U.S. Mint

"The U.S. Mint is the world's largest manufacturer of coinage. They are subject to market conditions that have to be managed, as would any manufacturer. Maybe the manufacturer's board of directors (Congress) and it shareholders (the taxpayers) should question how the managers are doing their jobs. Making them accountable will fix more issues than ignoring 216 years of history."

 

Enjoy.

 

Scott :hi:

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But what ought to surprise every American isn't that a government agency came up short. It's that the U.S. government should be making little metal discs at all.[/i]"

 

Actually, it's the Australian Mint that makes the little metal discs. The US mint just stamps a picture on to them.

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It is a simple answer, Seigniorage, which is the profit generated when governments coin money that is worth more than the sum of the coin's materials. This is why the government makes and issues coinage and will continue to do so until the government collapses.

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The initial point/counterpoint is an apples and oranges comparison. Of course the Mint should be n the coin making business, the question is should they be in the "making denominated bullion rounds for precious metal speculators" business?

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