WEBVTT - Short Stuff: The Great American Coin Shortage of 2020

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<v Speaker 1>Hey, and welcome to the short stuff on Josh, there's Chuck.

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<v Speaker 1>Jerry's over there. Let's get going. This is short stuff

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<v Speaker 1>about shortages of coins. Shortly. Yeah, hey, can you spare

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<v Speaker 1>some change? Uh? No? Why not? Um? What was it?

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<v Speaker 1>I can't remember who said? Think the line is? Haven't

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<v Speaker 1>your head? Is a coin shortage? Okay, let's try this again. Hey,

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<v Speaker 1>Mr Keney spares some change? No? Why not? Haven't you heard?

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<v Speaker 1>There's a what line? Coin shortage? There's a coin shortage?

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<v Speaker 1>And that summarizes our TV show success quite nicely, and

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<v Speaker 1>scene and scene, so we're there. Really is a coin shortage?

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<v Speaker 1>Or dramatization was a real one or based on real life,

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<v Speaker 1>a true story in the United States. Um our listeners

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<v Speaker 1>in Australia and New Zealand and UK and Germany who

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<v Speaker 1>knew you know, Um, did we hear from a German?

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<v Speaker 1>Is that what happened? Uh? They said, yes, we're listening

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<v Speaker 1>to you in Germany, okay, And they said cryptically and watching.

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<v Speaker 1>And what what some of you guys who are in

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<v Speaker 1>America might not realize is that if you went into

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<v Speaker 1>a store, the stores that are open right now during

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<v Speaker 1>the pandemic here in the United States, you might find

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<v Speaker 1>a sign that says, please pay with exact change or

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<v Speaker 1>use a credit card because we ain't got no change

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<v Speaker 1>for you, uh, if you need it. And it's actually

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<v Speaker 1>kind of becoming a bit of a problem and a

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<v Speaker 1>conspiracy theory over here. Yeah, so there are coins out there. Um.

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<v Speaker 1>The U. S. Treasury says that there were almost forty

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<v Speaker 1>eight billion dollars worth of coins in circulation in April

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<v Speaker 1>of this year, which is about four million more than

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<v Speaker 1>last year. But the deal is is those those coins

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<v Speaker 1>aren't moving there. They got no movement going on like

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<v Speaker 1>they usually do for a few reasons. Obviously, when businesses

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<v Speaker 1>closing and banks sort of closing and reducing their hours,

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<v Speaker 1>and things like arcades and laun dramats and public transit

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<v Speaker 1>where you use a lot of coins, and convenience stores,

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<v Speaker 1>when all that stuff closes up, it's gonna put a

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<v Speaker 1>serious dentt in the coin flow. It is because I mean,

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<v Speaker 1>all of these these businesses that are especially coin heavy, Um,

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<v Speaker 1>they they act as kind of like part of the

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<v Speaker 1>circulatory system that moves coins through the economy. And if

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<v Speaker 1>they're not closed, meaning they're not accepting coins, you can't

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<v Speaker 1>let the coins pass through them, so instead they go

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<v Speaker 1>back home to people's houses, which is where a lot

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<v Speaker 1>of them are right now. Um. Also, simultaneous to that,

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<v Speaker 1>Chuck the U s Mint was like, well, we don't

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<v Speaker 1>want to put our people at risk, so we're actually

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<v Speaker 1>gonna slow production and furlough a bunch of people because

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<v Speaker 1>we don't want them on the job giving COVID to

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<v Speaker 1>one another, which is kind of sensible. And then beyond that,

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<v Speaker 1>even if you do have a business, a lot of

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<v Speaker 1>people are saying, you know, they want like contact lists,

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<v Speaker 1>they don't want cash passing back and forth. They'll maybe

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<v Speaker 1>shove a credit card reader in your face from a

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<v Speaker 1>poll that it's attached to and they'll say, stick your

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<v Speaker 1>credit card in that. Um not doing a lot of

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<v Speaker 1>cash or asking for exact change. And again that just

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<v Speaker 1>means there are coins out there, they're just not flowing

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<v Speaker 1>through the economy like they normally do. Right, So for

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<v Speaker 1>all these reasons, there is an actual a coin shortage,

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<v Speaker 1>not a coin shortage, and that they don't exist, but

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<v Speaker 1>a coin shortage, and that they're not flowing through like

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<v Speaker 1>they're supposed to. Like you were saying, which I mean,

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<v Speaker 1>if you were, um, a thinking person you might buy

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<v Speaker 1>this time, have thought who cares? It doesn't matter, but

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<v Speaker 1>it does for a lot of reasons. And at first

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<v Speaker 1>is that UM. There are a lot of stores, kinds

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<v Speaker 1>of stories like you said, UM transit, public transit UM,

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<v Speaker 1>you know, the public transit store where you go to

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<v Speaker 1>buy public transits and coins UM, and then laundromats. There

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<v Speaker 1>are certain kinds of businesses that heavily rely on the

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<v Speaker 1>free and open flow of coinage UM for their businesses

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<v Speaker 1>to function. And if you go into one of those

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<v Speaker 1>businesses and they say you need to pay with exact change,

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<v Speaker 1>is that okay? Some of their customers are gonna be like, no,

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<v Speaker 1>it's not okay. I want I don't have exact change,

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<v Speaker 1>and I want my change back. Some of those stores

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<v Speaker 1>have tried to get creative and have said, how about

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<v Speaker 1>rather than us give you change back, we donated on

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<v Speaker 1>your behalf to a charity, like you kind of round

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<v Speaker 1>up your bill to have some of that donated. That

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<v Speaker 1>makes sense, But if you're kind of going through hard times,

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<v Speaker 1>which a lot of us are, you want that change back.

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<v Speaker 1>So then some stores have said, okay, all right, we

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<v Speaker 1>don't actually have physical coins here to give you change,

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<v Speaker 1>But we can give you a store gift card with

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<v Speaker 1>that amount on it. How about that? And some customers said,

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<v Speaker 1>that's fine, whatever, But I can't imag magine how much

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<v Speaker 1>of a dent in a store's efficiency. Stopping and adding

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<v Speaker 1>like thirty eight cents to a gift card for every

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<v Speaker 1>third customer who wants to pay with cash is doing

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<v Speaker 1>to to The stores in the United States that are,

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<v Speaker 1>by the way, are already struggling because they have opened

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<v Speaker 1>up in this pandemic um simply because they need to

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<v Speaker 1>to keep the lights on. Yeah, or some stores are saying,

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<v Speaker 1>how about in lieu of the thirty seven sins, I

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<v Speaker 1>compose a poem in which I integrate the words thirty

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<v Speaker 1>seven cents and I will sing it to you, right,

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<v Speaker 1>or maybe it takes a lot of time. Maybe our

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<v Speaker 1>head cash, your Bucky will give you thirty eight cents

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<v Speaker 1>where the pot from his stash. I wonder what thirty

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<v Speaker 1>eight since where the pot looks like? I don't know.

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<v Speaker 1>Probably that's a lot, right, sure, from everything I've read.

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<v Speaker 1>Should we take a break? Yes, all right, we'll be

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<v Speaker 1>right back with more coin shortage. Well, now we're on

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<v Speaker 1>the road, driving in your truck. Want to learn a

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<v Speaker 1>thing or two from Josh man Chuck and stuff you

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<v Speaker 1>should know. All right, all right, so we got a

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<v Speaker 1>coin shortage and ain't flowing. The National Grocer's Association and

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<v Speaker 1>some other retail trade groups sent a letter to Jerome Powell,

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<v Speaker 1>the Fed Reserve chair and Steve how do you pronounce

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<v Speaker 1>that hard nucan the manuch? No, that's the mooch Scar

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<v Speaker 1>Moucci that you're thinking of. Oh, that's right. Uh. He's

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<v Speaker 1>the Treasury Secretary. And they sent a letter in June saying, hey,

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<v Speaker 1>you're rationing these coin shipments to the banks, and that's

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<v Speaker 1>really threatening our business because it's you know, we come

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<v Speaker 1>from a place of privilege to be able to sit

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<v Speaker 1>around a joke about this because I'm like, oh, I'll

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<v Speaker 1>just put everything on my m X because I get

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<v Speaker 1>sky miles that are now useless. But here's the deal.

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<v Speaker 1>If you have a household income below twenty dollars, you

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<v Speaker 1>are paying for cash. Uh, you're paying for of your

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<v Speaker 1>transactions and cash. Right. This is why finally we reach

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<v Speaker 1>why it really actually matters, because there's a significant number

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<v Speaker 1>of Americans out there who depend on having cash handy.

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<v Speaker 1>Because the banks have said we don't think you're worthy

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<v Speaker 1>of having a bank account, and the credit card companies

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<v Speaker 1>have said, we're not going to extend you any credit.

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<v Speaker 1>So all you've got is cash. That's your only option.

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<v Speaker 1>And so if you aren't if the store is trying

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<v Speaker 1>to give you some some business or run around about

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<v Speaker 1>domint donating your thirty eight since the charity, no, you

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<v Speaker 1>probably want that thirty eight cents back, and not having

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<v Speaker 1>that thirty eight cents in circulation is a big problem

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<v Speaker 1>for a large number of people. Yeah, here's a couple

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<v Speaker 1>of other stats that may be surprised zing if you

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<v Speaker 1>always just throw down your credit card. Uh, forty five

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<v Speaker 1>to sixty of sales at all grocery stores and comedian

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<v Speaker 1>stores or cash, and uh for ten dollars or less.

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<v Speaker 1>About half of all transactions period in the US are

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<v Speaker 1>paid in cash if they're ten dollars or less. Yes.

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<v Speaker 1>And also, I mean there's a plenty of like gas

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<v Speaker 1>stations and convenience stores out there that have us a

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<v Speaker 1>longstanding policy that you know, nothing under five dollars or

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<v Speaker 1>three dollars or whatever can be put on a card

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<v Speaker 1>because as credit cards piece can can really add up

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<v Speaker 1>for a store like that. Um So now they have

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<v Speaker 1>no choice. If they don't have change to give out,

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<v Speaker 1>they have to take that credit card payment. So that's

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<v Speaker 1>dending their bottom line to the little um small business

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<v Speaker 1>owners as well. It's just a huge cluster that needs

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<v Speaker 1>to be fixed, Chuck. Yeah, and the fixed sort of

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<v Speaker 1>there isn't a real fix right now because everything that's

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<v Speaker 1>going on. You can't just put some artificial You can't

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<v Speaker 1>just like flood the market with coins because the problem

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<v Speaker 1>is they're not flowing anyway. It's not that they aren't there.

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<v Speaker 1>So the real solution is just eventually things will slowly

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<v Speaker 1>return to normal as far as coin circulation goes, just

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<v Speaker 1>like everything else returning to normal. Um. But they are

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<v Speaker 1>ramping up production of coins because they, I guess heard

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<v Speaker 1>the letter and they don't want to short change the

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<v Speaker 1>banks at least, and I think the usual is a

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<v Speaker 1>billion coins a month. They're now producing one point two

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<v Speaker 1>billion coins a month at least in June, and then

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<v Speaker 1>one point three five billion a month for the rest

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<v Speaker 1>of the year. Yeah, which I mean that's a substantial

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<v Speaker 1>increase for sure. Yeah, um, because yeah that we're talking

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<v Speaker 1>about three hundred and fifty million additional coins a month

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<v Speaker 1>for the rest of that's a huge uptick, so they're

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<v Speaker 1>definitely responding, But it seems like what everybody's saying is, hey,

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<v Speaker 1>you with the coin jar and you're cupboard, like you're

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<v Speaker 1>you're the problem, Like go take your coin jar to

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<v Speaker 1>the coin star. I think they um the FED actually

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<v Speaker 1>specifically aimed coin star as a place where you should

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<v Speaker 1>take your coins and trade them in for a gift

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<v Speaker 1>card or some cash or something like that. Or if

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<v Speaker 1>you don't want to pay whatever fee coin star um charges,

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<v Speaker 1>you can actually go into the bank take your coins.

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<v Speaker 1>They will be happy to see you for the first

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<v Speaker 1>time in their entire banking history showing up with a

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<v Speaker 1>jar full of coins, being like, can I have this

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<v Speaker 1>in exchange for some bills UM? That will help get

0:10:23.640 --> 0:10:25.960
<v Speaker 1>it back into circulation as well. Or you could just

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<v Speaker 1>start spending them like pay in coins um out of

0:10:30.480 --> 0:10:32.960
<v Speaker 1>your your coin jar that you have at home, reintroduce

0:10:33.040 --> 0:10:35.319
<v Speaker 1>it into the economy, in fact, is another way to

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<v Speaker 1>put it. Yeah, I can't remember when we talked about this,

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<v Speaker 1>but we talked about coins before and taking into the

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<v Speaker 1>bank and the fact that Emily and I when we

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<v Speaker 1>were first together and just broke as you could imagine,

0:10:48.200 --> 0:10:51.000
<v Speaker 1>would go on change dates, because we would go to

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<v Speaker 1>that coin star machine and dump them in there. And

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<v Speaker 1>I think that's when you said that you didn't do

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<v Speaker 1>coin star because of the fee. If I'm not mistaking,

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<v Speaker 1>the sounds like something I would say, Yeah, it was

0:11:02.679 --> 0:11:06.240
<v Speaker 1>a long time ago though, yeah, well still the same.

0:11:06.880 --> 0:11:10.439
<v Speaker 1>It's it'll be etched on my tombstone. He wouldn't pay

0:11:10.480 --> 0:11:14.800
<v Speaker 1>the fee. Um, So you can do something by spending coins.

0:11:14.840 --> 0:11:17.839
<v Speaker 1>That's a big one. Um. And there's actually a hashtag

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<v Speaker 1>that this coin task force that got put together came

0:11:20.679 --> 0:11:26.280
<v Speaker 1>up with called get coin Moving, not even coins, get

0:11:26.360 --> 0:11:31.880
<v Speaker 1>coin Moving, brick love lamp. It's it's pretty bad. Um.

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<v Speaker 1>And here's a little tidbit for you to chew on

0:11:34.320 --> 0:11:37.000
<v Speaker 1>while you're going through your coin jar um, trying to

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<v Speaker 1>figure out what you're gonna buy first with it. A

0:11:39.600 --> 0:11:42.400
<v Speaker 1>coin in the United States remains in circulation for up

0:11:42.480 --> 0:11:46.040
<v Speaker 1>to thirty years, So all those coins that are pumping

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<v Speaker 1>full of the economy with they're going to be around

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<v Speaker 1>for a while, whereas the paper bills that we have

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<v Speaker 1>usually only last about a year and a half. Wow,

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<v Speaker 1>that's it for sure, stuff, chuck, don't you think I

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<v Speaker 1>think so? Well? The short Stuff says everybody Giddeah. Stuff

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