A Look at Leninism - download pdf or read online

By Ron Taber

ISBN-10: 0939073366

ISBN-13: 9780939073368

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3 2 Principles [25], p. 375· THE GENERALISATION OF as a whole, occupies the main part of Keynes' General Theory. s long-period theory to output as a whole is by no means such a simple matter. In longperiod equilibrium the representative firm in an industry is enjoying normal profits, which means that, while some firms may be expanding and others contracting, the industry, on balance, is making no change in its capital equipment. When all industries simultaneously are in this state, there is zero net investment and zero saving for the economy as a whole.

Capacity is a somewhat vague notion. In some productive processes it may have an almost literal meaningsay, the capacity of blast furnaces-but in many the possible rate of output per day or per week from given equipment has no very sharp upper limit. Moreover, the capacity of plant depends upon the length of the working shift, the number of shifts that can be worked per week, and the possibility of overtime. However, the notion of the limit to the rate of output set by capacity does correspond to practical experience.

Prospects of profit are then high in utilising the new capacity, but hands are lacking, and for a time effective demand strains at the limits of full employment. But available labour meanwhile is rapidly increasing, for immigrants are attracted (not to mention slaves or convicts) so that the supply of labour responds to the demand for it. ) At the same time, investment takes the most labour-saving form that existing knowledge permits, and technique is constantly being improved so as to increase output per man-hour.

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A Look at Leninism by Ron Taber

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