From: Duncan Frissell <frissell@panix.com>
Date: Wed, 14 Aug 1996 00:46:08 +0800
To: bart.croughs@tip.nl>
Subject: Re: National Socio-Economic Security Need for Encryption Technology
Message-ID: <2.2.32.19960813100507.00a3f8d8@panix.com>
MIME-Version: 1.0
Content-Type: text/plain


At 08:02 PM 8/11/96 -0400, Perry E. Metzger wrote:
>
>I failed to note obvious counterexamples. Well known authors get giant
>advances for books written with manual typewriters. Minimum wage
>workers routinely operate expensive equipment. Workers doing the same
>job in different places using identical equipment that cost identical
>sums earn different salaries.
>
>Clearly, wages are defined by supply and demand -- not by "capital
>investment".

In the long run, employers will bid wages up to the level of discounted
value of marginal product of the labor -- the present value of the future
"price" of the increase in output ascribable to the added worker.

It never ceases to amaze me that there are people in this country who
actually believe that the average American in poorer now than in 1970.  I
can only be those who were unconscious in 1970.    

DCF