[PEN-L:6695] Re: competitiveness

[Michael Perelman <michael@xxxxxxxxxxxxxxxxx>]

JDevine@xxxxxxxxxxxxxxx wrote:


>
>
> Michael is right that technical change continued during the Great
> Depression. But during most of that period, the new technologies
> were not implemented unless they involved very small amounts of
> investment (or involved replacing capital equipment that needed
> to be replaced anyway). (Of course, the depression hit some
> industries more than others, so that there are obvious
> exceptions.)

I do not agree with Jim here.  While net investment was non-existant
during the depression, gross investment did continue.  Indeed, by the
end of the depression, the capital stock was relatively new, in part
because of the scrapping of old plant and equipment, but also because of
the purchase of new stuff.
>


>

--
Michael Perelman
Economics Department
California State University
Chico, CA 95929

Tel. 916-898-5321
E-Mail michael@xxxxxxxxxxxxxxxxx