[lbo-talk] productivity

[Brad DeLong]

>Brad DeLong wrote:
>
>>It's the flip side of the fact that IT capital goods are really 
>>cheap, and thus it is profitable to use them in surprisingly 
>>unproductive and marginal places...
>
>The assumption of the orthodox productivity studies with their 
>orthodox growth accounting models is that IT capital earns a 
>"normal" profit. You imply that that's not the case - that if 
>anything, it yields a low and falling rate of profit. Do Jorgenson, 
>Stiroh, and the rest of the gang know about this?
>
>Doug
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>http://mailman.lbo-talk.org/mailman/listinfo/lbo-talk

A low and falling *physical* rate of profit: the profit on 64 K of 
memory today is exiguous indeed. But because the prices of IT goods 
are falling so fast and have fallen so far, they do seem to be 
earning a normal *value* rate of profit...

Brad DeLong