On 3 December 2010 15:34, Paul Zarembka <zarembka@buffalo.edu> wrote:
> If there are 5% less machines, what are those workers who were working
> with those machines doing?
>
>
If the monetary value of the capital stock falls by 5% and the amount of
labour employed remains constant here it just means that the overall
production process can produce its output with a smaller stock of capital.
If any amount of labour has been displaced by this reduction --- which does
not follow --- it means that the equivalent quantity is redeployed elsewhere
in production.
But again, the question has no determined answer at this level of
abstraction which is a strength, because the predictions can be made without
such detailed modelling of the production process.
//Dave Z
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Received on Fri Dec 3 09:59:17 2010
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