Raw Materials Economics is a macro-economic discipline that provides the mechanisms and calculations needed to determine the accurate value of the primary wealth from Nature.
Raw Materials Economics encompasses a number of math based formulas that determine the monetary equivalent of the sun's stored energy and its immediate bounty.
Raw Materials are a gift from nature. It's as simple as Nature Credits, Mankind debits...
The work necessary to produce crops or extract minerals from the earth and convert them into items of industry and commerce creates additional dollars as more value is added at each point in the production cycle.
At the end of the production cycle, all products containing raw materials are purchased and consumed as calories, BTUs of energy, or utilized as longer term assets. Each contain some residual energy from the sun.
The new calories, BTUs and physical assets produced from raw materials each year are the net addition to the value of the economy. The intelligent labor employed to convert these materials into things we use are a necessary cost. At the end of each production cycle, the only real profit remaining is the raw material in its finished form that stands to benefit society after all the associated costs of production are paid.
The profit in this system must be sufficient to allow the next cycle of production to begin without creating capital debt. Therefore, raw materials must be priced at Parity with skilled labor and consumer goods.
It follows that the price of raw materials limits the amount of money available to pay for the items necessary to produce the raw materials. This limitation may only be exceeded by the injection of debt into the process which adds cost but no additional intensic value.
The price of raw materials also determines how much skilled labor can earn for manufacuring everything necessary to extract or produce the raw materials.
This process modulates the success of interwoven and interdependent industries across the econony which are necessary to sustain and build the middle class.
This internal economic balance is the basis of a par or (Parity) economy. A Parity economy creates structural balance and builds gainful employment which slowly raises the standard of living for a society and results in maximum total employment.
If this natural system of economic symbiosis is allowed to function properly, it will create a balanced and fully functional economy and eventually, unlimited opportunity and prosperity.
Simply stated, if you look around you, you will see an abundance of raw materials which we take for granted. Labor converts the raw materials into usable items of commerce. The labor is always the cost. The raw materials are always the only real profit in the economic system. Therefore, a capitalist society must price its raw materials at Full Honest Parity in order to enjoy maximum sustained prosperity.
Some refer to this natural economic equation as the gifts of nature, others call it the gifts of God.
Some readers may be interested in our recent calculation of Barley Seed Parity taken from the Bible at Leviticus 27:16
"A homer of barley seed shall be valued at fifty shekels of silver."
1 Homer = 6 Bushels
1 Shekel of Silver = 11 Grams of Silver (March 2014)
50 Shekels = 550 Grams of Silver
1 Gram of Silver (March 2014) = $0.68 USD
50 Shekels = $374 USD (550 x 0.68)
1 Bushel = 48 Pounds
6 Bushels = 288 Pounds
$374 / 288 Pounds = $1.30 per Pound of Barley Seed
Current Seed Price $0.70 per Pound (53% of Biblical Parity)
Source: The Holy Bible