Price and Value, Capital and People

I thought I’d recommend an author I haven’t read. So, I guess I’ll recommend a video instead.

Raj Patel on Democracy Now! http://www.democracynow.org/2010/1/12/raj_patel_on_the_value_of

The basic premise is simple and a topic most people have probably discussed. If prices represent the value of items, then our priorities are wildly out of line (teacher vs. athlete’s salary). More importantly, if prices reflect the costs of production then the prices are outright lies.

Patel makes a big deal out of hamburgers – if we take into account the acres of forest burned down to make room for cattle grazing; the carbon that forest could sequester; and, the price of a fair wage, the cost of a hamburger would be around $200.

The point is there are a lot of social and environmental costs out there that aren’t being reflected in the price of goods because they are externalized by the owners for that little extra off the top.

This an interesting and pressing problem and it shows that we’re doing something wrong. But, how do we fix it? Should consumers be responsible and demand “fairly priced” products? Sure, it’s a friendly sounding market solution, but many can’t afford the prices. Should the government provide subsidies and impose taxes to reflect society’s needs? Probably, but it’s a tricky business, especially with much of America’s penchant for “free” markets. Or, should the government’s role simply be to help strengthen consumer awareness with watchdog groups and labeling? Yeah, but the food industry lobbies incredibly effectively to stop these proposals. Should workers have more power in determining company practices to avoid unfair wages? Definitely, and this is why the work the Coalition of Immokalee Workers is doing is so important. They’re demanding a penny per pound more for a pound of tomatoes, which, incidentally wouldn’t make a dent in the current price of a burger, let alone Patel’s $200 Whopper.

The beautiful part of the CIW is that the people who need better wages are the ones demanding them. This is a great model for organizing and for society as a whole – the people who are most affected by certain decisions should be the one’s making those decisions. I think this is what we really mean when we say democracy, but somehow we’ve come to confuse the needs of capital with the needs of people. The connection has become very real and is very dangerous (starvation, slavery, homelessness), and this is exactly why we need to educate ourselves. Hence, Raj Patel.

If anyone has other good resources let everyone know – knowledge really is power.

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Welcome to Rice for Peace and Justice!

Rice for Peace and Justice supports non-military solutions to the world’s problems and hopes to promote peace with education and advocacy on campus.

We work to dismantle opression due to race, class, gender, ability, and sexuality by securing social, economic, and environmental rights for all people.

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