[OPE-L:4981] Re: Re: causes of changes in prices of production

From: Allin Cottrell (cottrell@wfu.edu)
Date: Mon Feb 19 2001 - 21:53:37 EST


On Mon, 19 Feb 2001, Drewk wrote:

> The issue is whether the growth of Dept. I can outstrip the growth
> of Dept. II, i.e., overcome the supposed "limits" set by demand
> for consumer goods.  It was obvious to Luxemburg and it is obvious
> to Paul that the answer is "no."  It is obvious to me and to
> others that the answer is "yes."  As somewhat put it at the AHE
> conference last year (where I posed my question to Paul),
> capitalism *is* production for production's sake.

I once heard an anecdote, attributed to Kalecki: Q: What do you do if
the railroad from A to B is languishing from lack of traffic?  A:
Build another railroad from A to B, of course!  (Hence providing
custom for the first one in construction.)

Intuitively, it seems clear that's there's a sort of "bubble" here,
though I'm not sure how one would prove that it has to burst within
finite time.

Allin Cottrell.



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