17 Dec
2003
17 Dec
'03
11:17 p.m.
Arun Mehta wrote:
Indeed. Bart makes a very remarkable assumption, which is that the total amount of capital in the fastest growing industry in human history is constant.
I didn't make this assumption. When I say that when capital leaves the US, the amount of capital in the US will be lower, I mean that the amount of capital will be lower than it otherwise would have been. It will be *relatively* lower, and so the wages in the US will be *relatively* lower than when when the capital wouldn't have left the US. Of course, absolutely speaking the wages could still become higher. I thought this was so obvious that I didn't make this explicit. Bart Croughs