That's a useful distinction, but I would say it is the commodity sector that 'works' as far as markets go, and the other one that doesn't. The stability of the intellectual-prop sector preserves its inefficiency and unfairness. Market functionality travels over the dead bodies of failed suppliers. -- mbs
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 [EMAIL PROTECTED]
