I keep inserting typos into the link to Michael's paper. I hope this is correct:
http://www.geocities.com/socredus/lane-03-27-03.txt ---- "7. Hypothesis - The sawmill can dispense with someone's labor and make a cheaper board today, but the cheaper board won't become a cheaper chair till tomorrow. As a result, prices fall, but income falls ahead of prices: income is chronically short of prices, and markets do not clear." -- Except in the aftermath of a credit contraction or collapse, markets generally do clear because of markdowns that enable goods to be sold. Because production must in the aggregate be sold at a loss due to labor displacement, it always appears to individual entrepreneurs that there is falling demand for their products or services, whereas, what is actually falling, as a statistical matter for the economy in the whole, is financial demand, not real demand. Therefore, they continuously shift production in the attempt to gain competitive advantage over other entrepreneurs to sustain their individual rate of profit. The process is wastefully hyper competitive as compared to what should be expected in a free market. _____________________________________________________________ Get 25MB, POP3, Spam Filtering with LYCOS MAIL PLUS for $19.95/year. http://login.mail.lycos.com/brandPage.shtml?pageId=plus&ref=lmtplus ==^================================================================ This email was sent to: [EMAIL PROTECTED] EASY UNSUBSCRIBE click here: http://topica.com/u/?a84IaC.bcVIgP.YXJjaGl2 Or send an email to: [EMAIL PROTECTED] TOPICA - Start your own email discussion group. FREE! http://www.topica.com/partner/tag02/create/index2.html ==^================================================================
