House of Paine

vickrey mark up market part two

a way to reg price levels without
 regs on actual prices..





==================================


  once you know input prices 
 you set your mark up
to hit the selling sweet spot 

problem
this interlaced system can take off 
all on its own 
if the credit system keeps feeding it 

so how can you stop a take off


well one way the usual way is
keep a labor reserve large enough 
to cow wage rate increases 

like running a low fever allows to keep an infection in check


another way

crank down on credit availibility 
 if price setters
 seem to be shifing  
                    up 
                      their rate of lift  

  this will squash growth of course
just as chronic underemployment 
leads to perminent under performance
             out put ...wise 


so  if you set the dials for full employment
on both the fiscal and credit dimensions 
ie you plan on passing thru the wage push 
acceleration barrier 

you need  a  third control
  to keep the price level from zooming off
as wage and profit holders 
chase each other for a bigger value added  share 

how well by fixing the total value added availible
by fixing the allowable mark up


now since each firm fACES A DIFFERENT SWEET SPOT MARKET PRICE

THE MARKET IN MARK UPS ALLOWS FLEXIBILITY 

VERY MUCH LIKE A POLLUTION MARKET REALLY 

IT CONTAINS THE TOTAL AND ALLOWS THE SYSTEM TO FIND WITHIN ITSELF THE PROFIT MAX CONFIGURATION CONSISTENT WITH THAT OVER ALL PLANNNED PRICE LEVEL 

NEEDLESS TO SAY

THE UNION VS CORPORATION SLUG FEST GOES ON

ITS JUST NOT A PASS THRU  SYSTEM
TO HIGHER AND HIGHER VALIDATED RATES
 OF PRICE AND WAGE INCREASE 
LIKE THE 70'S POLICY OF NIXON-BURNS AND CARTER MILLER 
 WAS SAID TO BE
     AT LEAST IN  OUR CARTOON KLASS STRUGGLE HISTORY  

TO BE CONTINUED

WITH A CONCRETE EXAMPLE OF HOW THE VICKREY MARK UP MARKEY MIGHT OPERATE