Re: Re: RE: Farm "subsidy" data base

[Michael Perelman <michael@xxxxxxxxxxxxxxxxx>]

Gene, I have been pushing the idea that the economy breaks into two
different sectors.  1 consists of the undifferentiated commodities, and
the other, those sectors protected by intellectual property rights.  The
former will remain in trouble while the latter will prosper as long as it
is backed by state power.  But then, you will have to wait until my book
comes out in a few months ....

On Thu, Dec 27, 2001 at 09:47:31AM -0800, Eugene Coyle wrote:
> My argument is that selling an undifferentiated commodity on the market
> -- like many farm commodities -- actually results in prices that only
> cover marginal costs, not average costs.  The difference has to be made
> up somehow.  That is what I see as the idea behind farm subsidies.
--
Michael Perelman
Economics Department
California State University
Chico, CA 95929

Tel. 530-898-5321
E-Mail michael@xxxxxxxxxxxxxxxxx