[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