“All the perplexities, confusions, and distresses in America arise not from defects in their constitutions or confederation, not from a lack of honor or virtue, but rather from a fundamental ignorance of the nature of coin, credit, and circulation.”
– Letter from John Adams to Thomas Jefferson, August 25, 1787
Illegal Money
“Let’s remove the waste from our great nation’s budget, even if it’s just a penny at a time,” stated President Trump on February 9, following his directive to the Secretary of the Treasury to cease penny production.
The reasoning behind this decision is straightforward: it costs more to manufacture a penny than its face value. In fact, the U.S. Mint incurs an expense of nearly four cents to produce a single penny.
This situation sheds light on the extensive damage the federal government has done to our currency since the Federal Reserve Act was enacted by President Woodrow Wilson on December 23, 1913. Essentially, the government, in collaboration with the Fed, has eroded the value of money— including the hard-earned dollars you’ve saved and invested throughout your life.
Just how severe has this currency devaluation been? According to the Bureau of Labor Statistics’ own inflation calculator, the value of a U.S. dollar has plummeted by 97 percent since 1913. This means that the dollar has effectively been devalued to around $0.03 today. Continue reading
In summary, the ongoing discussion about the penny encapsulates a broader issue surrounding the integrity of our currency. As we examine the implications of halting penny production, it becomes evident that this movement signifies more than cost-saving measures; it reflects a significant commentary on our current financial system. Awareness of the ongoing devaluation of money is crucial to understanding the economic landscape we navigate today.
