> This paragraph appears in a story by Anya Schiffrin in The Industry
Standard:
>
> >"Our new-economy capital stock is more flexible and so much less
> >vulnerable to the over-investment trap," says [Brad] DeLong. "A
> >chemical factory can only be used to make chemicals. But a server
> >farm and its fiber-optic cables can be used to organize and control
> >any component of the economy." If so, the economy this year will
> >finally show just how new it really is.
>
> Really? Can a server farm be redeployed so easily? And if the problem
> is just too much capacity, what good is redeployment?
>
> Doug
Partial overproduction,yes, that a bourgeois economist easily understands; a crisis of general overproduction--well that really shouldn't happen as long as you tweak the money supply (or if you are Austrian didn't tweak with it too much in the boom) and play with fiscal policy here and there. Brad believes in capitalism under the guidance of wise men like him. Today. Tomorrow. And Forever. It will take a general crisis to pound some dialectics into his head.
Yours, Rakesh