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The credit or decreasing curves of demand for production and-or raising curvesOffers of production factors), as corresponding to distinction between Situations, where only a labour rate or only norm of percent Defines, what methods of production will appear profitable.
That Kaldor ignores consequences of limitation of the offer of work, Extremely significantly, as through recovery of price of the offer of work Shortage of the real resources accessible to investments has an effect (Caused by competing demand of manufacturers of consumer goods). It
The conclusion follows exclusively from the assumption (and it is true, only if it
The assumption to accept) that elasticity of the offer of work (and others Production factors) it is infinite. If it so then really is not present The reasons why businessmen not to succeed in use of the unlimited Money resources for snowballing of volume of production by more expensive Methods, taking measures simultaneously for more economic production
- its volume during later period. While there are vacant reserves of the worker
Forces on a constant price, mean unlimited money resources The unlimited order resources. But it is not a condition answering Situations of the full employment arising near to a peak level of boom.
We will more clearly see the problem connected with it if for a minute we will admit that each
The firm represents completely integrated process of production, so That not only production of the final goods and all diverse used
It of kinds of raw materials, materials, etc., but also manufacturing of the equipment,
Necessary for production, occurs within the limits of the firm. In Circumstances considered by us each of such integrated firms Could involve an additional labour only by the offer more High wages. And though rather less capitalist branches Could consider profitable increase in number of the labour such Way - at the expense of more capitalist branches, in case of absence
The unemployed it will appear it is impossible for all firms, or all branches, or for
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