by LoneSnark » Tue 15 Jan 2008, 11:01:57
$this->bbcode_second_pass_quote('', 'a')s we all know, wealth travels to the cities. So even if it is available, a lot of poor people (rural and urban alike) will be priced out of the market.
Yes, given a supply disruption your second sentence is absolutely true, that is price rationing, those with the greatest pull to divert their spending will do so, be it switching to alternative sources of heating (firewood) or blankets.
As for the first sentence we have been over this, wealth flows between individuals, sometimes it generally flows to individuals living in the cities and sometimes it generally flows to individuals living in rural areas. In the oil age wealth did flow towards the cities more than the rural because on average too many of us at any-given time were living in rural areas. But past performance is no guarantee on future performance; in a non-oil age this flux of people from the rural to the urban may need to be reversed to boost farm production, and to do that will require a reversal of wage differentials in favor of rural areas.