The long-run trend is cheaper commodities. That was the point of the famous Simon-Ehrlich bet.
42 sats \ 1 reply \ @TomK OP 1 Aug
Maybe he's wrong... oil will be much higher after the recessionary shock. Pricing power moved to the producers
reply
Well, he already won the bet. I agree that we could see a spike in that ratio: commodities 2x while S&P 0.5x.
The point is just that as the world gets more productive, inputs become cheaper in real terms.
reply