[OPE-L:2897] Re: Value of LP // Real Wage

Paul Cockshott (wpc@cs.strath.ac.uk)
Wed, 28 Aug 1996 02:47:35 -0700 (PDT)

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>The discussion among Allin, Duncan, Jerry and Hans
>raises some issues.
>1. If rising real wages cause capitalists to introduce
> labor-saving and capital-using technologies, will
> falling real wages give them cause to switch back
> to the old techniques? Are there examples of this?
There was a good example of this reported in Pugh's book
on the history of the IBM 360 computer. During the early
60s there was a tremendous demand for core memories for
computers and IBM developed highly automated machinery
for making them, even opening a factory to produce
the machinery that made them. They then found that
labour could be had in asia at a fraction of US rates, closed
down their automated factories and had them assembled
by hand in asia.
Paul Cockshott