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Strategies & Market Trends : ahhaha's ahs
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To: frankw1900 who wrote (13995)5/25/2009 2:36:36 PM
From: ahhahaRead Replies (1) of 24758
 
Falling productivity does mean higher cost which eventually must be passed on in higher price, or lower wage, or lower profit, or a combination of all three

There's a fourth, your "flip side". Falling activity, where prices and wages hold constant. You can see it has an asymptotic lower limit, but we're not there yet. As long as DM admin continues its present course, future lower limit will not be reached. In this scenario people continually adapt to ever less if deterioration proceeds slowly enough. Otherwise, the adaptation is chaotic.
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