From: Bart  Croughs <bart.croughs@tip.nl>
Date: Tue, 13 Aug 1996 12:25:18 +0800
To: "'cypherpunks@toad.com>
Subject: re: National Socio-Economic Security Need for Encryption Technology
Message-ID: <01BB88AF.40553180@groningen04.pop.tip.nl>
MIME-Version: 1.0
Content-Type: text/plain




Perry Metzger wrote:

> 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.

>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".


When economists say that wages are determined by the amount of capital invested, they mean on a regional/national level, not on the level of individuals.

Bart Croughs