From Craft to Mass Production

  • Edward Nell
Part of the Palgrave Studies on Henry George for the 21st Century book series (PSHGC)


But this system is hard on firms; prices fluctuate with demand, so profits do too. Innovations will make it possible to adjust labor costs more easily, laying off workers when demand drops off, rehiring them when it recovers. In effect this means that the curvature of the production functions is being flattened into a straight line. This leads to a different pattern of market adjustment, replacing the partly stabilizing price mechanism with the destabilizing multiplier.


Layoffs Multiplier Keynesian adjustment 


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© The Author(s) 2019

Authors and Affiliations

  • Edward Nell
    • 1
  1. 1.New SchoolNew YorkUSA

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