7a 
That technical progress sad seal© are closely related is 
•prim f jcio plausible, Technical progress proceeds by 
1) division of labour (leading ultimately to the con 
veyor belt) 2) replacement of human energy by energy from 
other sources (which involves machinery for energy trans 
formation and-application) 3) continuous processes 4) self- 
regulation ( automation, computers). These technical changes 
all tend to increase scale, while at the same tin© they 
also increase capital per man. 
Some time ago economists used to think that economic pro 
gress involves a substitution of capital for labour, more 
capital ' eing used per unit of output. Satirical studies 
(Kuznets, Goldsmith etc.) have shown that thte-jn hiotorical-by 
£ , i '1 te-t L-i 4' 1 -' f ’t&'iut. 'frcesit^C t+, Hx.li 4tft$ 
^ery_unlikelyJto-baveJiapp©n—in. Technical progress^proceeds eL 
by making things cheaper in terms of labour and in terms 
of capital at the same time. 
There are also considerable doubts about the concept of a 
"given technique", consisting of "alternative methods" of 
production of a final good. However^ ^production methods do 
not fall from the sky. What ift, fact really "exists" are 
only those techniques which have been developed,which have 
been tried out (i.e. where there are proto-types, or ex 
perimental production runs). In a given country or region 
there will be fairly uniform wage and interest rates and 
all methods developed will be aimed at fitting the pre- 
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