Just finished reading an interesting article on the disappearance of half dollar coins from circulation in the April 2009 issue of CoinValues. In quick summary, the demise is primarily blamed on the coin size while the re-introduction hope is based on a new design but with reservations that Americans are not quick to adapt to change. I find the last sentence odd, if Americans in general are not quick to change then how did the once popular coin quickly disappear from circulation?
The answer lies in it's usefulness with respect to purchasing power. To support this position let's begin with 1945 (hey day of half dollars in circulation). With a little help from the site "Measuring Worth" we have calculated the purchasing power of the half dollar into 2008 dollars.
In a matter of just 40 years, the purchasing power decreased by 83%. Given the rapid decrease and throw in it's large size (30mm) it's suddenly not hard to see why average Americans abandoned the half dollar. Is the solution to increase the denomination? It's hard to believe that the 1, 5, or 10 dollar bills will be eliminated anytime soon so this collector firmly believes we will never see a 30mm size coin in circulation in our lifetime.| Purchasing Power of a Half Dollar | |
|---|---|
| Year | Purchasing Power in 2008 Dollars |
| 1945 | $5.98 |
| 1955 | $4.02 |
| 1965 | $3.41 |
| 1975 | $2.00 |
| 1985 | $1.00 |