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The E-Sylum:  Volume 9, Number 41, October 8, 2006, Article 19

MORE ON REEVALUATING CENTS AND NICKELS

Dick Johnson writes: "Frankly, I had expected a greater outcry from
E-Sylum readers reacting to my proposal to reevaluated cents and nickels
to ten cent value to offset any continuing loss of producing these
coins with metal valued at more than their face value.

I must thank Sri Lanka's Kavan Ratnatunga for his comment. However, he
made one incorrect assumption -- he observed this move as a "zero sum
game."  If someone gained nine cents for each cent in their possession,
therefore someone must have lost nine cents.  Not true.

It is directly related to an expanding economy. No one -- personal,
corporate, or government -- loses nine cents.  The purchasing power
of the indivudual coin is readjusted.

A question for Kavan -- If you own a stock valued at ten dollars and
it goes up in value to twelve dollars, you gain two dollars, provided
you sell the stock. No one lost two dollars.  It is not "zero sum"!
It doesn't have to balance out. Over time the economy expands.

It is directly related to the expanding economy. Do we perhaps have
an economics major among our readers who can explain this better than
I have?"

  Wayne Homren, Editor

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