[OPE-L:636] Re: Forms of Tech Change(Digress)

Michael Perelman (michael@ecst.csuchico.edu)
Sun, 3 Dec 1995 08:53:19 -0800

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Here is my understanding of how technical change causes the rate of profit
to fall. I will use a simple example.

I am an accountant. To keep up with the competition, I buy an original
IBM pc. My competitors respond by buying a 286. Even though I have just
purchased a new computer, I have to scrap it to buy a 386. My competitors
repsond with a 486. In the end we are all bankrupt.

I have been working on a history of the U.S. economy in light of this
phenomenon.

-- 
Michael Perelman
Economics Department
California State University
Chico, CA 95929


Tel. 916-898-5321
E-Mail michael@ecst.csuchico.edu