Economics & Personal Finance
Coins, Coins a bore? Well maybe.
For the better part of a year I have been helping my sister out with collecting old coins. Coins from the past of course. While most of us rarely pay for anything in cash these days, the times I do, I have developed a habit of checking the dates on all my change. I always feel like people watch me while I flip coins over or shift them in my hand to read the dates. I think they wonder what I am actually looking for... But I still do it.
So when I do find a coin that is pre-1970, I put it aside while the others go in the ashtray of my car or in the big beer pitcher Heath and I stole from a bowling alley. The bowling alley was the only place I have ever been that served pitchers of beer in real 1/4 inch thick glass, with the "Old style" logo on them. AND, you had to keep score manually. Lately they always made me account for the points.... When we went to pay, they didn't care how many games we played, they were just like, "20 bucks will do."
Aside from the digress, these coins have an observation. When I lived in La Crosse, WI (a city of 50K) I would find old coins at what I'll call a standard rate. Then I moved to a small town of Sturgeon Bay, WI (town of 9k) where I found an elevated amount of coins and while living in Winson Salem, NC (city of 250K) I have found a substandard amount of pre-1970 coins.
So my ecomonist wheel began to turn. As I see it, the smaller the community the more localized the economy is. For example the gas station gives the hair stylist some change, who then buys something from the grocer, who deposits the money in the bank. The bank, then cashs the check from the ship builder who starts the process again. This can go on for years; the exchange of the same money is the essense of the supply of cash the economy experiences; hence the elevated pre-1970 coins. The only time "new" money is entered into the economy, is when someone from out-of-town uses cash to pay for something. (Some economists use this example of "new" money for their basis in a multiplier effect)
The larger the urban setting, the more chances of new money is entered into the supply and the larger demand from banks for more money increases. From my observations, and basis knowledge that the supply of money is distributed from large cities, this holds true, as I am finding it rarer and rarer to locate pre-1970 coins.
So if you live in a small community, look at your coins every now and then to see how many are pre-1970; I think you'll be surprised. And if you live in a larger community, I think you'll be disappointed or well, maybe... surprised.
lARRY
ps: from a macro-economic point-of-view: what happens when the banks restrict credit, people lose their jobs and consumers buy less things? Do the old coins sit in a jar awaiting their next journey, or are they circulated even more?
So when I do find a coin that is pre-1970, I put it aside while the others go in the ashtray of my car or in the big beer pitcher Heath and I stole from a bowling alley. The bowling alley was the only place I have ever been that served pitchers of beer in real 1/4 inch thick glass, with the "Old style" logo on them. AND, you had to keep score manually. Lately they always made me account for the points.... When we went to pay, they didn't care how many games we played, they were just like, "20 bucks will do."
Aside from the digress, these coins have an observation. When I lived in La Crosse, WI (a city of 50K) I would find old coins at what I'll call a standard rate. Then I moved to a small town of Sturgeon Bay, WI (town of 9k) where I found an elevated amount of coins and while living in Winson Salem, NC (city of 250K) I have found a substandard amount of pre-1970 coins.
So my ecomonist wheel began to turn. As I see it, the smaller the community the more localized the economy is. For example the gas station gives the hair stylist some change, who then buys something from the grocer, who deposits the money in the bank. The bank, then cashs the check from the ship builder who starts the process again. This can go on for years; the exchange of the same money is the essense of the supply of cash the economy experiences; hence the elevated pre-1970 coins. The only time "new" money is entered into the economy, is when someone from out-of-town uses cash to pay for something. (Some economists use this example of "new" money for their basis in a multiplier effect)
The larger the urban setting, the more chances of new money is entered into the supply and the larger demand from banks for more money increases. From my observations, and basis knowledge that the supply of money is distributed from large cities, this holds true, as I am finding it rarer and rarer to locate pre-1970 coins.
So if you live in a small community, look at your coins every now and then to see how many are pre-1970; I think you'll be surprised. And if you live in a larger community, I think you'll be disappointed or well, maybe... surprised.
lARRY
ps: from a macro-economic point-of-view: what happens when the banks restrict credit, people lose their jobs and consumers buy less things? Do the old coins sit in a jar awaiting their next journey, or are they circulated even more?
Tags: coins, local economies, money supply, old
Replies are closed for this discussion.
Replies to This Discussion
-
Permalink Reply by Nathan Andover on -
Also, think of all the uses of coins that are no longer in our economy. There used to be pay phones everywhere. Now it is hard to find one. Vending machines probably get more dollars than coins these days. I once took a bunch of coins to a casino and was surprised to find out they were no longer accepted in the machines. Bills and credit cards only!
I suppose parking meters are right up there as the number one place coins are still used? And while I usually pay with bills, I generally get some coins back. Then those coins get put in the parking meter jar in the car.
Interesting thoughts Larry on how small local economies are more isolated and self containing. I would imagine this make local economies stronger in some ways (neighbors trusting/helping each other more) and weaker in some ways (one factory goes out of business and the entire local economy is put at risk).
This is also true with politics. In a small community, it is harder for new ideas to enter the culture because there are fewer potential entrance points. In a larger city, new ideas enter and spread more easily because there are more people and cultures interacting with each other.
So while small economies may have more coins from long ago they also might have more political ideas from long ago.
-
Permalink Reply by Larry on -
I think the size of the community determines how isolated or interdependent the community's economy functions. Finding coins and making an ad hoc observation are a way to show this...
Pay phones? Where can you find one of those? They have gone a way, I cannot remember the last time I used one of those. I went to a local hardware store the other day and bought 3 screws for 16 cents. I went back to my car to use my coins because I didn't want 84 cents back in more coins. I think that was the smallest price I've paid for something since buying penny tootsie rolls as a kid!
With politics, I agree that smaller communities deflect newer ideas because of entrance points, but it’s also the way of life the people choose. The people I've met from small towns like the atmosphere and intimately of knowing everyone and (at least where I've been) try to avoid conflicting ideas. A large city is less personal, making disagreements more prevalent but at the same time making the arguments for or against the ideas stronger. When this occurs, the only logical next step is action (and doing nothing is an action). To me, that's what makes city life so interesting, and why I left the smaller communities behind.
© 2010 Created by EconomicChat.com.
