Did someone tell you that it's not worth a plug nickel? What does that mean? This post unpacks the meaning and origin of this expression.
Meaning
The expression 'plug nickel' refers to the debasement of a nation's coinage. People would punch a hole in the center of coins to remove some of their value, replacing it with lead. Some people would split the coin in half, remove the precious metal, and braze it back together.
A plug or plugged nickel is a five-cent coin (nickel), and later a three-cent coin. The 'plug' or 'plugged' coin has a piece missing from the center, lowering the intrinsic value of the coin. People would 'plug' all types of coins. However, the phrase 'plug nickel' went on to describe anything worthless.
Today, people don't plug nickels or coins because they don't contain any precious metal. For instance, the old silver dollar is now worth more than a single dollar due to the price of the silver used in coin production.
Example Usage
“The US Dollar is turning into a plug nickel. The Federal Reserve keeps printing money and debasing the currency. We’re all losing purchasing power to inflation.”
“My car is a plug nickel. It keeps depreciating in value and costs me money to fix it. Pretty soon, it’s going to break down, and I’ll have to buy a new one.”
“Your savings are like a plug nickel. Inflation keeps eroding the purchasing power, and you’re losing money by keeping it in the bank.”
“I remember that story of how the Romans debased their gold coins with copper. Eventually, it led to the fall of the Empire. The Denarius was the original plug nickel.”
Origin
The expression ‘plug nickel’ or ‘plugged nickel’ originates from currency debasement in the late 1800s. Tennessee’s Knoxville Daily Journal published a description of the boxer, John L. Sullivan, in July 1889, which reads as follows.
“Why, old man Gladstone, Bismarck, Harrison, and James G. Blaine all rolled into one would not have received such worship. At that moment, Sullivan could have bought New Orleans, including the Louisiana state lottery and Generals Beauregard and Early, for a plugged nickel.”
However, the modern currency used in the United States and around the world no longer contains base metals or precious metals. Today, all money is a promissory note and a form of debt.
Phrases Similar to Plug Nickel
- Clipping.
- Currency debasement.
Phrases Opposite to Plug Nickel
- Sound money.
What is the Correct Saying?
- Plug nickel.
- Plugged nickel.
Ways People May Say Plug Nickel Incorrectly
Some people may refer to a plug nickel as a nickel coin. While this is technically correct and its original meaning, it changed over the years. Today, a plugged nickel is anything that lost value due to people's mismanagement.
Acceptable Ways to Phrase Plug Nickel
You can use the phrase 'plug nickel' to describe any situation where a person diminishes the intrinsic value of something by removing it. The term suits professional and social use. You can use it at work to describe how something you're selling isn't worth the money. You could use it with friends to explain how central bank monetary policy is destroying the global economy.
The phrase suits use where you want to describe something losing its value due to the greed or mismanagement of others. It refers to something with decreasing appeal as people search for another way to source value for their labor.