From: Bart  Croughs <bart.croughs@tip.nl>
Date: Tue, 13 Aug 1996 12:47:04 +0800
To: "'cypherpunks@toad.com>
Subject: AW: National Socio-Economic Security Need for Encryption  Technology
Message-ID: <01BB88AF.3C1CDF00@groningen04.pop.tip.nl>
MIME-Version: 1.0
Content-Type: text/plain


Timothy C. May wrote:

>At 10:31 PM 8/11/96, Bart  Croughs wrote:

>>         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.
>>If American

>I agree strongly. In my Econ 101 class, lo those many years ago, I was
>constantly reminded to "Remember the Croughs Axiom!"

I would be proud if I had discovered this axiom, but alas, I haven't. It's an axiom that is generally accepted among austrian economists (Rothbard, Hazlitt, etc). I don't know who actually discovered it.

>It is why MacDonald's workers, who work at a company which has invested
>truly vast sums of money in the capital of its outlets, pays its workers so
>much more than do the legal firms, advertising firms, etc., which have
>invested almost nothing in the capital of their facilities.

When economists say that wages depend on the amount of capital invested, they mean on a regional/national level, not on the level of individuals.
	Back to class!

Bart Croughs