Thoughts on Raw Materials Economics

I'm not one to quote Ben Franklin very much, but this is worth pondering. I found this in the latest issue of ACRES USA. I think Mr. Walters wrote it.


Ben Franklin pointed out in his Positions to be Examined Concerning National Wealth(1769) that there are three ways a nation might become wealthy.

1. By War, which permits taking by force the wealth of other nations.

2. By Trade, which to be profitable requires cheating. For example if we give and receive an equal amount of goods and services through trade, there is no profit other than that obtained in our own production cycle.

3. By Agriculture, through which we plant the seeds and create new wealth as if by miracle.

In fact, raw materials production times price has a 3 fold effect.

1. The raw materials supply determines the number of jobs available in fabrication, processing and use-- from raw materials production to manufactured products and use.

2. The dollar value put on this new wealth--raw material production--determines the amount of money which can and must be used to produce, buy, and move through the economy raw materials production. As various costs are added, chiefly labor and capital costs, the add on factors pyramid themselves into national income.

3. The value placed on raw materials automatically becomes the initial market for the exchange of manufactured goods. It also defines the level of profit and savings for the economy.....

The anatomy of trade as a social profit maker is just plain wrong.