[OPE-L:665] Re: Forms of Tech Change(Digress)

Paul Cockshott (wpc@clyder.gn.apc.org)
Thu, 7 Dec 1995 15:04:12 -0800

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

Paul C
I agree with your example.

Would you agree that whilst technical change causes the
first derivative of profit with respect to time to fall,
it causes the second derivative ( the rate of decline )
or more precisely the rate of change of the rate, to
rise, which since we assume the first derivative to
be negative, amounts to a smaller absolute rate of
decline in the rate of profit.

The causal mechanism is the way the absolute reduction
in profit induced by technical change reduces the
rate of accumulation and thus slows the rate of rise of
the organic composition.