Advocacies to Editorial Board: Eliminating the Penny is a Wise Decision, Yet It Falls Short of Adequate Monetary Reform

'A Los Angeles Times reader argues that the decreased value of our money necessitates a new financial strategy that accurately reflects the depreciation of the U.S. dollar.'

, and Administrator

2025 May 28 . 12:28 PM

2 min read

A Los Angeles Times reader expresses concern that the value of money has decreased significantly,... — A Los Angeles Times reader expresses concern that the value of money has decreased significantly, thus requiring a novel strategy that effectively accounts for the decline of the U.S. dollar's worth.

Advocacies to Editorial Board: Eliminating the Penny is a Wise Decision, Yet It Falls Short of Adequate Monetary Reform

Editorial Submission: A Proposed Overhaul of U.S. Coinage and Currency

In a recent submission to the editor, a Culver City banker, George Kahn, has proposed an overhaul of U.S. coinage and paper currency, citing the increasing costs of production and the devaluation of the dollar.

Mr. Kahn suggests retaining the penny but renaming it the nickel, as it currently costs 4 cents to manufacture. He proposes the nickel become the dime, with a smaller size due to its present manufacturing cost of 14 cents. The dime would then be replaced by the quarter, and the quarter would be designated as 50 cents. The paper dollar, he argues, should be eliminated due to its loss-making nature. The dollar coin, with an estimated lifespan of 30 years compared to the dollar bill's 6.6 years, would continue to be used. To maintain a two-dollar denomination, Mr. Kahn suggests introducing the two-dollar bill or moving directly to the $5 bill.

Mr. Kahn concludes his letter by inviting President Trump to acknowledge his plan, calling it a "brilliant solution" to the growing devaluation of the dollar.

While there are ongoing discussions about U.S. currency and economic policies, such as maintaining dollar dominance through the development of dollar-backed stablecoins and legislative changes in stablecoin issuance, Mr. Kahn's proposal does not directly pertain to these developments. However, his idea of redesigning coins and bills for cost savings and enhancing security features could potentially be considered in future reforms.

George Kahn's opinion on the overhaul of U.S. coinage and currency includes a suggestion for President Trump, proposing a redesign of coins for cost savings and enhanced security features.
There's a discrepancy in personal-finance matters in California, as the current manufacturing cost of a nickel is 4 cents, while coinage in the U.S. still refers to it as a 5-cent coin.
In his letter, Mr. Kahn offers a potential solution to the devaluation of the dollar, proposing replacing the penny with a more cost-effective coin and renaming it the nickel, aligning with California business practices.