This is a primer that makes clear that the only economics that count must square well with the observed facts. Those facts say that values placed on raw materials as they enter the economic cycle govern the earned income of any economy. Raw Materials Economics is a codification of NORM (National Organization for Raw Materials) thinking.
Charts, tables and a special summary by the late Vince Rossiter make Raw Materials Economics a history of the past and a blue print for the future. If you’ve wanted to gain a better understanding of raw materials economics, this book is a great way to begin.
Benjamin Franklin, one of the founders of the Amercian system, [wirting in Positions to be Examined Concerning National Wealth, April 4, 1769] pointed out that there were three ways in which a nation might become wealthy:
By war, which permits taking by force the wealth of other nations
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.
By agriculture, through which we plant the seeds and create new wealth as if by a miracle.
In this remarkable little primer, Charles Walters Jr. proves that raw materials production times price has a threefold effect.
The raw materials supply determines the number of jobs available in fabrication, processing and use - from raw materials production to manufactured products - and distribution
The dollar value put on this new wealth raw materials 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 labour and capital costs - the add-on factors pyramid themselves into national income.
The avlue placed on raw materials automatically becomes the initial market for the exchange of manufactured goods. It also defines the level of profits and savings for the economy. During several periods of full employment and ocntrolled debt expansion, fully half of the market for manufactured goods remained in rural America, where it was created via the production and income from raw materials.
- Extracted and abstracted from Raw Materials Economics.
