re: National Socio-Economic Security Need for Encryption Technology

Perry Metzger wrote:

> 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.

>I failed to note obvious counterexamples. Well known authors get giant
>advances for books written with manual typewriters. Minimum wage
>workers routinely operate expensive equipment. Workers doing the same
>job in different places using identical equipment that cost identical
>sums earn different salaries.

>Clearly, wages are defined by supply and demand -- not by "capital
>investment".


When economists say that wages are determined by the amount of capital invested, they mean on a regional/national level, not on the level of individuals.

Bart Croughs

Bart Croughs writes:
> >Clearly, wages are defined by supply and demand -- not by "capital
> >investment".
> 
> When economists say that wages are determined by the amount of capital
> invested, they mean on a regional/national level, not on the level of
> individuals.

So, you are saying that if everyone in the country spent their life
savings on building giant green pylons, the capital investment would
drive up everyone's wages? Wow! In fact, we could borrow money from
other countries to build more green pylons and drive up wages so fast
we could pay off the resultant debt!

Perry

(PS Please stop posting these things -- you may kill everyone watching
with laughter.)