Defining Capitalism

[Michael Perelman]

I would think other factors would affect the relative price of the
software and the garment: the military that surround the work compound
threatening anybody who would dare to ask for better conditions; the WTO
and the US government, which stand behind intellectual property laws.  The
power of Microsoft to eliminate competitors.

But I don't think that these factors are what concerned the physiocrats.

On Tue, Jul 03, 2001 at 07:54:55PM -0700, Brad DeLong wrote:
> >Pardon my ignorance but selling a copy of microsoft windows does not
> >exactly equal the import of a garment, even if their market price is
> >equivalent.
> 
> 
> Why not? Two centuries ago the physiocrats were busily saying that 
> selling a garment did not exactly equal the import of foodstuffs, 
> even if their market price is equivalent. They were wrong then. Do 
> you have any reason to think that you are right now?
> 

-- 
Michael Perelman
Economics Department
California State University
Chico, CA 95929

Tel. 530-898-5321
E-Mail michael at ecst.csuchico.edu