Timothy C. May wrote:

At 10:31 PM 8/11/96, Bart Croughs wrote:

...

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. If American

I agree strongly. In my Econ 101 class, lo those many years ago, I was constantly reminded to "Remember the Croughs Axiom!"

I would be proud if I had discovered this axiom, but alas, I haven't. It's an axiom that is generally accepted among austrian economists (Rothbard, Hazlitt, etc). I don't know who actually discovered it.

It is why MacDonald's workers, who work at a company which has invested truly vast sums of money in the capital of its outlets, pays its workers so much more than do the legal firms, advertising firms, etc., which have invested almost nothing in the capital of their facilities.

When economists say that wages depend on the amount of capital invested, they mean on a regional/national level, not on the level of individuals. Back to class! Bart Croughs