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"This is completely wrong. Source code is perfectly understandable to computers. Indeed, there are programs called interpreters that allow computers to directly execute programs stored in source code form."
The fact that the computer needs an additional interpreter to understand the source code means that the computer does not understand the source code at all. By your logic I can be accused understanding Japanese if there happens to be a person standing next to me who can interpret for me. I cannot understand a word of Japanese and unless I have the internal ability to do so you cannot rightfully accuse me of that capability.
What I don't understand is what makes source code different from an "mathematical algorithm" but then how then is a series of instructions for building a machine different from a "mathematical algorithm"?
Distinguishing between a computer's "intrinsic" capabilities and those capabilities that requires "additional help" seems like a fool's errand to me. You can, in fact, build computers that directly execute human-readable programming languages. On the other hand, some CPU's, such as Transmeta's Crusoe, essentially execute machine language "in software." And there are languages like Java that compile to a bytecode that machine languages nevertheless have to interpret.
Waxman's point was that it required human intervention before a computer could execute source code. When Waxman says that "A lot of work has to be done in items of debugging and testing," he's talking about more than just knowing to download the relevant interpreter and/or run the code through gcc. This clearly is not so.
JWB, the difference is that a mathematical algorithm deals entirely with abstract mathematical constructs like numbers and variables, whereas the instructions for building a machine necessarily involve real-world parameters that can only be approximated by mathematical description. "2 + 2 = 4" is a mathematical algorithm. "Put two eggs and two cups of flour into a bowl" is a recipe. "Egg" and "flour" are not abstract concepts that can be given precise mathematical definitions, and so therefore the latter is not a mathematical algorithm.
Shocking.