Solution for Seastead Economics.
May 26, 2010 at 9:46 am #1265May 26, 2010 at 5:19 pm #10266
That was an excellent presentation. I’m very impressed. That graph showing the earnings of IP companies vs. non-IP companies told the whole story. Thanks for the link.May 28, 2010 at 12:03 pm #10302
It tells part of the story. The low IP industries she cites: food, automobiles, fashion are all tangible goods, i.e. physical objects. They also happen to be fairly essential to modern life. The high IP industries: films, books and music in a digital age highly intangible; they can be reduced to bits of information. They also happen to be less essential; art. Life without art would probably be really bad, but life without food….May 28, 2010 at 4:35 pm #10310Jeff wrote:
It tells part of the story. The low IP industries she cites: food, automobiles, fashion are all tangible goods, i.e. physical objects. They also happen to be fairly essential to modern life. The high IP industries:. They also happen to be less essential
MICHAEL POLLAN: Well, there are a lot of causes. Some are technological. Many are social. Basically, the business model of the food industry, because it’s based on these agricultural commodities, the price of which are always falling—corn and soy and wheat—the way you make money in such an economy is by processing, by adding value. So you take that corn, which is—I don’t—you know, it’s been as low as $1.50 a bushel. And let us remind your readers how much corn that is. It’s a bushel basket. It’s fifty-six pounds of kernels. OK, that’s really cheap for a food or a raw ingredient for foods. You can’t really eat the stuff. And so, you make money the more you trick it up. So, for example, a potato is 69 cents a pound, OK? Not a lot of money. But Terra Yukon Gold French fries—I’m sorry, potato chips, come to $10.37 a pound, OK? A lot of value added simply by slicing and frying in oil and marketing beautifully and having a nice bag. So the tendency is going to be to complicate foods. That’s how you make money.
Food is dirt cheap. Gorment meals ad Junk-Food is expensive.May 28, 2010 at 5:21 pm #10311
I didn’t say food was expensive.May 28, 2010 at 6:04 pm #10312Jeff wrote:
I didn’t say food was expensive. You said it was essential to spead so much on food.Jeff wrote:
They also happen to be less essential; art. Life without art would probably be really bad, but life without food….
My point is that they only need to spend 7% or so of that to keep from starving to death.May 28, 2010 at 6:26 pm #10313
Oats are $2.00 a bushel.
Quaker Oats are $67.50 a bushel
Only a small fraction of the money spent on food is for necessities.
οὐκ ἐμοῦ, ἀλλὰ τοῦ λόγου ἀκούσαντας ὁμολογεῖν σοφόν ἐστιν ἓν πάντα εἶναι.May 29, 2010 at 9:28 am #10324Altaica wrote:
I didn’t say food was expensive. You said it was essential to spead so much on food.[/quote]
No I didn’t. Please excuse me if I don’t respond to your further postings.June 10, 2010 at 4:40 am #10405
Altaica, man i am not speaking English in native level so perhaps i shouldn’t be the one saying this, but you really should improve your english anyways what he meant is…
Food, transportation and clothing is essential to our lives in modern age. Without food you can’t survive, but without music you can and you can not eat dollars or chew gold bars you simply have to buy food… He was simply classfying goods as essentical(must) and non-essential.June 10, 2010 at 11:47 am #10407
Oats are $2.00 a bushel. Quaker Oats are $67.50 a bushel
The difference being that a bushel of oats must be further processed, to become ‘Quaker Oats,’ which have been hulled and steam-rolled, to make them ready to prepare. How many people want to crack hulls, winnow and steam-roll oats, when they first get up, before they can make oatmeal for breakfast?
If you can’t swim with the big fish, stick to the reef
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Written by Altaica