Federal Reserve Bank

President Obama’s new budget shows savings of $50 million annually by curtailing the production of unwanted $1 coins. As a former budget director for President Reagan, I know first-hand how difficult it is to cut spending and how important it is to guard against faddish programs that claim savings but actually add to federal spending and to the deficit – which is what you’d get if you let Congress replace the dollar bill with the dollar coin.

The latest proposals to do just that are all the more vexing, given that consumers overwhelmingly reject the dollar coin. Keep reading →