This question <701|701> overall <700|702> Tyler: <643|101>. graded A

Question 744: Why does the rise in the organic composition outpace the growth of capital?

[701] Tyler: faster growth than capital?   Marx gives several mechanisms which cause the increase of the organic composition to be faster than the accumulation of capital:

1) Centralization or the merging of individual capitals increases the scale of production 2) Technical innovation of new capital forces original capital to innovate as well 3) An increasing number of industries are taken over by increasing organic composition 4) Intermediate pauses become shorter

Which, according to Marx, lowers the value of labor because of the technological advances of capital. Expanding upon the first mechanism, the accumulation of capital is driven by capitalists seeking quantitative gains. However, these increases in the scale of production must be accompanied by cooperation of workers and improved training of workers: Both of which will result in qualitative gains. The qualitative gains will result in an efficient, well trained workforce which will further increase the quantitative gains. Therefore, the cycle will repeat itself since further qualitative gains will be needed to accompany the perpetual qualitative gains.

	Students enrolled for Econ 5080 in 2009fa are invited to give feedback to the above message Pseudonym:      UofU ID:   Text: