~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ SANDY SANDFORT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C'punks, On Mon, 12 Aug 1996, Bart Croughs wrote:
My statement that the wages depend on the amount of capital invested, has received a bad press. I thought cypherpunks were economically literate, so I didn't explain the principle and I didn't give any sources for further reading. This proved to be a mistake. To avoid this kind of uninformed criticism in the future, I recommend my critics read the following books, which can all be ordered from Laissez-Faire Books...yada, yada, yada.
Been there, done that. I repeat, the error that Bart made is assuming that because some US-source capital gets redirected overseas, that the total amound of capital investment will decline thus producing the wage drop he is fretting about. Unless he can show that foreign capital investment will not flow to US workers who are "forced" into working in industries where they have a comparative advantage, his argument must fail. After all, I--like the economists Bart cite--think international free trade, the free flow of capital in persuit of the highest return and division of labor are a GOOD thing. S a n d y ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~