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