From: Allin Cottrell (cottrell@WFU.EDU)
Date: Fri Mar 30 2007 - 23:23:33 EDT
On Fri, 30 Mar 2007, Rakesh Bhandari wrote: > I was wondering whether anyone could recommend any other work or > offer some analytical comments on just why capitalism could not > settle into simple reproduction (stationary state?) or why even > if were constrained to do so it would have difficulty > maintaining equilibrium. It's possible "in principle", if the capitalists consume the surplus and just carry out replacement investment. But I'd say the instability stems from this consideration: as soon as each capitalist sees that his competitors are just plodding along doing the same thing over and over, he realizes he could carry out a little investment, improve his technology, and make a killing. Excessive stability creates a strong incentive to destabilize. Allin Cottrell
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