Everyone is feeling the economic crunch these days, and that includes the Treasury Department. It’s no secret that there has been growing dissatisfaction with President Obama’s latest bailouts, but today could represent a turning point for his recent negative public relations. This change may also save the government a significant amount of money.
Recent reports indicate that the U.S. Treasury is facing financial troubles. According to USA Today:
For the first time in U.S. history, the cost of producing a penny and a nickel exceeds their respective values of 1 cent and 5 cents. The U.S. Mint has attributed this increase to soaring metal prices, as noted in a letter sent to Congress. The Mint estimates that it will cost 1.23 cents to produce a penny and 5.73 cents for a nickel in this fiscal year, which concludes on September 30. The production cost of a penny has surged by 27% over the past year, while the cost of making a nickel has risen by 19%.
It’s clear that continuing to spend money on these coins is not a wise decision. Discussions are already underway to eliminate smaller denominations and request retailers to round prices to the nearest 10 cents. This change could also provide a financial boost to small businesses, as prices like $2.99 would round up to $3.00, giving businesses an additional cent on each sale.
Additionally, a new initiative called the At-Home Money Printing Stimulus is being rolled out immediately. This program requires only a computer and a printer, allowing you to use your home office to print the money you need, effectively turning your printer into a new ATM.
With a simple software installation, you’ll log into your bank account to make a withdrawal just as you would at an ATM. Instead of receiving cash, you’ll get image files (PDFs) representing the money. For those concerned about fraud, each printed note will feature a unique barcode, as illustrated below.
Once a barcode has been used, it becomes inactive. Therefore, anyone attempting to photocopy the notes will face difficulties. This unique barcode system also enables the government to track spending habits. For instance, if you download $100 and spend it at Crate & Barrel, that information will be shared with a database, aiding the government in planning future stimulus packages.
As nearly every store can read barcodes, this technology can be implemented without delay. Smaller businesses lacking barcode scanners will continue to accept cash, checks, and credit cards.
All major banks support this initiative, and you can download an instruction manual here. While it may not be suitable for everyone, it marks a step forward, potentially saving the U.S. millions in printing costs that can be directed toward reducing our national debt.
