Booms, Busts, and Recoveries Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Booms, Busts, and Recoveries

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: smolejv@gmx.net who wrote (11400)	11/27/2001 1:12:21 AM
From: Moominoid	Read Replies (1) of 74559

The trend of technological change has been to save labor and land and increase the use of capital and minerals/energy (except during the oil crises). This is measured by looking at the shares of the different inputs in total costs holding prices constant (using an econometric model for example). The assumption is that workers go on strike, quit unexpectedly, get ill etc, be lazy, demand a share of profits etc. and so try to reduce their use as much as possible. Even though ceteris paribus more labor per unit of capital will increase the marginal product of capital (hence produce in low wage countries). What we see in most developed countries in recessions is that unemployment increases by more than the fall in GDP even if population is stable, as holding GDP constant causes rising unemployment due to the declining demand for labor and as wages are generally fairly sticky downwards. We could have technical change that saved on energy say or even on capital but latter might not be consistent with capitalism?

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next