Re: Is information the fourth factor of production? Was - Re: what's wrong with eastern germans?

From: Mark Monson (m_monson_at_ztech.com)
Date: 08/15/04 

Date: Sun, 15 Aug 2004 12:46:14 -0400

"Darren Rhodes" <darren.rhodes5@btopenworld.com> wrote in message
news:cfnt35$gd7$1@hercules.btinternet.com...
>
> <royls@telus.net> wrote in message news:411dbde3.7409505@news.telus.net...
> > On Fri, 13 Aug 2004 15:44:40 +0000 (UTC), "Darren Rhodes"
> > <darren.rhodes5@btopenworld.com> wrote:
> >
> > ><royls@telus.net> wrote in message
> news:411bb954.2106712@news.telus.net...
> > >> On Thu, 12 Aug 2004 15:05:55 +0000 (UTC), "Darren Rhodes"
> > >> <darren.rhodes5@btopenworld.com> wrote:
> > >>
> > >> >"sinister" <sinister@nospam.invalid> wrote in message
> > >> >news:nVISc.9543$EQ5.441@nwrddc03.gnilink.net...
> > >> >>
> > >> >> To add to Roy's comments about land rent:
> > >> >> Classical economists defined 3 factors of production: land (==>
> rent),
> > >> >> labor (==> wages), capital (==> interest).
> > >> >
> > >> >Do you regard information as a factor of production? Darren.
> > >>
> > >> Information is considered to contribute to production as part of labor
> > >> and/or capital. It is also not scarce as the other production factors
> > >> are: if it exists, it can be reproduced at arbitrarily low cost.
> > >
> > >If two entities attempt to produce something and one of the entities has
> > >information as to the method of production while the other entity does
> not
> > >have this information there will be a huge cost disparity of the
> otherwise
> > >equivalent products.
> >
> > Right. The skill of the worker that possesses the information makes
> > the difference. But skills are all considered part of "labor."
> >
> > >As the products become more sophisticated the cost
> > >discrepancy can be such that without the necessary information it is not
> > >possible to make the product (in this case information _is_ a factor of
> > >production).
> >
> > It is just part of labor and/or capital.
> >
>
> Isn't 'skill': that is, the ability to turn information into knowledge and
> hence use it for commercial gain an intrinsic part of labour? Whereas,
> information is extrinsic to labour: without the information there is nothing
> for the labour to apply its' skills upon? On this basis isn't information
> separate from labour; whereas if skill is defined as the ability to convert
> information to knowledge then this _is_ part of labour.
>
> > >As for the scarcity of information - doesn't copyright make
> > >information _artificially_ scarce since it cannot _legally_ be reproduced
> at
> > >arbitrarily low cost?
> >
> > Yes. But that means the information is not actually a production
> > factor. Rather, the intellectual property privilege is a barrier to
> > entry. Consider the prallel cases of agricultural quotas, taxi
> > medallions, etc. A taxi medallion is not a factor of production just
> > because there is a law that says you have to have one in order to push
> > a hack.
> >
> > -- Roy L
>
> By that argument charging rent on land means that land is no longer a
> production factor. Similarly, charging tax upon employing labour; by the
> argument above, suddenly means that labour is no longer a factor of
> production.
>
> Thanks for your reply, Roy; but still, it appears that under the
> circumstances initially outlined; information is the fourth factor of
> production. Darren.

An atmosphere of good will, cooperative spirit, business ethics, civic
responsibility, and advanced knowledge (information) are all intangible aids to
production. They are not included in the Factors of Production because unlike
Land, Labor, and Capital they do not receive discreet returns in the distribution of
wealth.

MM

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