this brings me to whatever is going to happen to real wages (w/p) where p is
determined by mark-up and the degree of monopoly or market imperfection in the
broader sense. to use one analytical tool from kalecki:
w/p=Q/kL-fF/pL, where k is the degree of monopoly, f is the price of imported
material and F is their volume. the rest is standard notation.
So by again, broad analogy, as the profits in agriculture rise the real wages
fall. And so once more, the scissors open and there will a marked departure of
values from prices leaving the direct producers with a little less than they
have had before.
----- Original Message ----
From: Michael Perelman <[EMAIL PROTECTED]>
To: PEN-L@SUS.CSUCHICO.EDU
Sent: Tuesday, February 19, 2008 7:41:43 PM
Subject: Re: Peak food
Yes, but production costs are a relatively small part of most food costs
compared to
profits, distribution, marketing ....
On Mon, Feb 18, 2008 at 11:48:38PM -0800, soula avramidis wrote:
> isn't the rising cost of energy content of modern agriculture specifically
> rising oil prices partly responsible for the rise in food prices?
--
Michael Perelman
Economics Department
California State University
Chico, CA 95929
Tel. 530-898-5321
E-Mail michael at ecst.csuchico.edu
michaelperelman.wordpress.com
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