From: "James A. Donald" <jamesd@echeque.com>
Date: Sun, 18 Aug 1996 03:25:00 +0800
To: Bart  Croughs <cypherpunks@toad.com>
Subject: Re: Imprisoned Capital
Message-ID: <199608171713.KAA21889@dns1.noc.best.net>
MIME-Version: 1.0
Content-Type: text/plain


[In response the argument that attempts to imprison capital will cause 
capital flight]

At 10:50 PM 8/16/96 +-200, Bart  Croughs wrote:
> This is a good point when you talk about governments that will 
> prevent *all* capital from flowing out. But a government could 
> prevent the outflow of capital of it's own citizens, and still 
> allow capital of foreigners to leave the country. As long as 
> foreign capital isn't imprisoned, foreign capital could be 
> attracted.

Been tried.  Does not work.

1.  If foreign capital is allowed to freely enter and leave, internal
players find ways to sneak their capital out.  This forces the
government to start regulating and supervising foreign businessmen
in ways that at best terrify them (such controls look very much
like creeping confiscation), and at worst cause them huge harm
with no real benefits to anyone.
 ---------------------------------------------------------------------
              				|  
We have the right to defend ourselves	|   http://www.jim.com/jamesd/
and our property, because of the kind	|  
of animals that we are. True law	|   James A. Donald
derives from this right, not from the	|  
arbitrary power of the state.		|   jamesd@echeque.com