[OPE-L:7243] [OPE-L:768] Re: On capital saving technologies

Ajit Sinha (sinha@cdedse.ernet.in)
26 Mar 99 13:41:11 IST (+0530)

> In the recent debate about new capital, I think that it is
> important to differentiate
> between capital used to produce consumer goods and capital use to
> produce capital
> goods. Marx wrote once that technical change begins in the
> production of the first
> kind of capital and later affects the second. I mentioned before
> that Mike L. sent
> me a quote from Marx on the subject, but neither of us can locate
> it now.
> --
> Michael Perelman
I can think of a reason why Marx would think that. Capital is
interested in reducing the value of labor-power, so it naturally
concentrates its energy in trying to produce consumer goods as
cheap as possible--but I think one needs to work this reasoning
out through the competitive mechanism and not somekind of subject
centered decision. Of course, rise in productivity in capital good
sector would also have desirable effect on the consumer goods, but
not as much as the direct impact. Cheers, ajit sinha
p.s. all my *Capitals* are somewhere on the sea, so cannot locate
the asked for reference.