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

From: Rue The Day (ruetheday_at_outgun.com)
Date: 08/15/04 

Date: 15 Aug 2004 11:22:56 -0700

"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.

No, Roy is correct. The information is embodied within the labor and
capital.

> > >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.

How do you arrive at that conclusion? You're confusing the taxi with
the taxi medallion. The taxi is capital, and thus is a factor of
production. The land is land, and thus is a factor of production.
Land titles and taxi medallions are not necessary for the land or
taxis to exist.

>Similarly, charging tax upon employing labour; by the
> argument above, suddenly means that labour is no longer a factor of
> production.

Huh???

> Thanks for your reply, Roy; but still, it appears that under the
> circumstances initially outlined; information is the fourth factor of
> production.

No, it isn't. Without any information at all, labor and capital could
not exist. Information is an intrinsic part of labor and capital.

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