From: "Perry E. Metzger" <perry@piermont.com>
Date: Mon, 12 Aug 1996 09:28:51 +0800
To: Bart Croughs <bart.croughs@tip.nl>
Subject: Re: National Socio-Economic Security Need for Encryption Technology
In-Reply-To: <01BB87DE.CFF8D020@groningen15.pop.tip.nl>
Message-ID: <199608112336.TAA13447@jekyll.piermont.com>
MIME-Version: 1.0
Content-Type: text/plain



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.

>  If American companies are moving capital to Third World
> countries because of the low wages in these countries, then the workers
> in the Third World will of course be better off. But in the US, the
> amount of capital will be lowered.

????

> So the American workers will be able to get other jobs, but these
> jobs will pay less, because of the diminished amount of capital in
> the US.

This is truly one of the oddest economic theses I've seen in years.

It seems like an odd offshoot of mercantilism at the very best...

Perry