[ExI] Next Decade May See No Warming

[Stefano Vaj]

On Fri, May 2, 2008 at 4:23 PM, Stathis Papaioannou <stathisp at gmail.com> wrote:
>  If the average cost of energy goes up then everyone, on average,
>  becomes poorer because more resources must be put into produce the
>  same amount of goods. Even if nominal profits are maintained by
>  increasing prices to compensate for increased costs real profits will
>  still be eroded as a result of inflation.

Yes, it is a different way to say the same thing, but with a slight
difference: it would not be just a matter of nominal profits and
inflation.

If you measure the profits in terms of margins, the same depend on the
relative scarcity of offer in comparison to demand, not on the
"absolute" costs of input.  Jewellers do not have lower margins
because gold or diamonds have a higher absolute cost than, say, lead.

Stefano Vaj