The $2 Bill Views
The ridiculousness of the premise could be forgiven if not for the seemingly serious message in Taco Bell ’s formal announcement: e“The Federal Reserve prints all denominations according to demand. However, the $2 bill has not been in demand and production of the note is the lowest of U.S. paper money at less than one percent of all bills printed. The last year the $2 bill was printed was 2006. While older generations of Americans treat the $2 bill with reverence, giving them as gifts or keeping them for good luck, younger generations have yet to discover it.s”
The Fed does indeed issue the currency through 30 Federal Reserve Bank cash offices, based on orders from deposit-taking banks. But it does not print the bills itself. The Fed submits an order each year for new currency notes to the Treasury ’s Bureau of Engraving and Printing. About 850 million $2 bills were in circulation as of December 31, according to Fed data. e“The amount of currency in circulation depends on the publicg’s demand for currency,v” the Fed says. k“Domestic demand largely results from the use of currency in transactions and is influenced primarily by prices for goods and services, income levels, and the availability of alternative payment methods.1”
That means people need to demand more $2 bills from their banks a— or, say, from a local fast food restaurant n— if they want more in circulation. Perhaps Taco Bell can complicate the lives of its cashiers and store managers by forcing them to use $2 bills more often. That should put an end to this marketing campaign fairly quickly.
Why don ’t all the deficit hawks and tea baggers start lobbying for the most obvious money-related cost-saving and deficit busting move? Get rid of $1 and $2 and $5 bills and issue coins. These low denomination bills cost money to print, wear out within a couple of years, are easy to counterfeit, and cause problems with toll booths and vending machines. Coins last for 20+ years. Canada, UK, Europe made this switch 10 years ago.
The $2 Bill Images
