Re: mechanisms of core wealth

Pat, you just don't get it.
Most people on this list -- I imagine nearly all who follow world-systems
analysis -- realize that the "free market" economic bullpucky that
you are peddling is a load of hogwash at best, and at worst, poor
ideological
dribble that simply justifies the immorality of capitalism.   You ought to
debate free market ideas on the Milton Friedman Network or the Paul
Samuelson Network.  That's the bin it belongs in.

I write this comment after having about seven long exchanges with Pat
on the side.  I finally gave up.

----- Original Message -----
From: Pat Gunning <jgunning@squ.edu.om>

> I assume that other conditions, which may contribute to a wage
> differential, are similar (i.e, working conditions, taxes, government
> services, infrastructure, transportation costs, the natural environment,
> etc.) The answer from an economist is that the institutions
> (specifically, national governments) have served to restrict free trade
> and, accordingly, to have caused or maintained the conditions under
> which such a huge wage differential is possible. Free trade ("the
> market") serves to equalize wages as well as profit, other things equal.
> This is one of the "core" principles of the economic theory of
> international trade that is found in practically every textbook on the
> subject.
>
> But perhaps this is not what you mean. Businesses ordinarily pay the
> lowest wages they can, just as they pay the lowest possible prices for
> raw materials, equipment, and loans. You may believe that the "global
> society" would be better served if they paid the Mexican workers more.
> Another way to achieve wage equality would be for the Canadian unions to
> accept cuts in pay for their workers.