``I must give him his due. He has considerably cretinized me.'' Lautréamont

Pics click to enlarge.

Wednesday, November 22, 2006

Weighing In on Wages (NYT)

news flash : energy prices determine how much energy is demanded

second news flash : prices of everything determine how much of everything is demanded

it does not affect purchasing power. it affects what you choose to spend your money on.

if coffee is $50 a pound, you don't buy much coffee, even if I give you the $50. You spend it on something you prefer to coffee at $50 a pound.

You still have the $50 to spend on something you prefer.

Americans' purchasing power now depends almost entirely on the up and down of energy prices.


Blog Archive