Borsodi’s Law

David Fleming
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“Distribution costs will tend to move in inverse proportion to production costs.”

That is, although small-scale local production of food, goods and services tends to be more expensive (per unit produced) than large-scale centralised production, these costs are offset by lower distribution costs (i.e., less transport).

It does not follow that locally-produced goods will always be cheaper, because so many variable factors (such as wages and fuel costs) are involved, as well as the economies of scale that are available to larger systems. However, it does follow that, as the cost of fuel for transport increases, the relative advantages of local production can be expected to increase.B16

 

Related entries:

Localisation, Energy Prospects, Lean Household, Regrettable Necessities.

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David Fleming
Dr David Fleming (2 January 1940 – 29 November 2010) was a cultural historian and economist, based in London, England. He was among the first to reveal the possibility of peak oil's approach and invented the influential TEQs scheme, designed to address this and climate change. He was also a pioneer of post-growth economics, and a significant figure in the development of the UK Green Party, the Transition Towns movement and the New Economics Foundation, as well as a Chairman of the Soil Association. His wide-ranging independent analysis culminated in two critically acclaimed books, 'Lean Logic' and 'Surviving the Future', published posthumously in 2016. These in turn inspired the 2020 launches of both BAFTA-winning director Peter Armstrong's feature film about Fleming's perspective and legacy - 'The Sequel: What Will Follow Our Troubled Civilisation?' - and Sterling College's unique 'Surviving the Future: Conversations for Our Time' online courses. For more information on all of the above, including Lean Logic, click the little globe below!

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