Re: [OPE-L] simple reproduction

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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