From: "Perry E. Metzger" <perry@piermont.com>
Date: Mon, 12 Aug 1996 10:06:35 +0800
To: Bart Croughs <bart.croughs@tip.nl>
Subject: Re: National Socio-Economic Security Need for Encryption Technology
In-Reply-To: <199608112336.TAA13447@jekyll.piermont.com>
Message-ID: <199608120002.UAA13510@jekyll.piermont.com>
MIME-Version: 1.0
Content-Type: text/plain



I realized that I'd simply dismissed Bart without explaining why his
contention is so silly.

"Perry E. Metzger" writes:
> Bart Croughs writes:
> > 	 But there is another axiom of economics which the
> > nationalist/socialist can use for his case against the free movement of
> > capital. This axiom states that the wages of workers depend on the
> > amount of capital invested. The more capital invested, the higher the
> > wages are.
> 
> This must be some new axiom of economics that I had not heard of.

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".

Perry