Full text: Distribution and Growth

16 
outside world. This also means that the blow which GNP 
receives will be considerably softened. 
These considerations are particularly relevant to the present 
situation of a reduced long term growth rate in face of 
inflexible profit mark-ups (_X) • The budget softens the blow. 
This is small consolation for the long term structural effects 
on industry of a reduced investment activity. The ossification 
and senescence of industrial structures and the shift of 
interest from production to finance has a devastating influence 
on the innovative powers and the technical advance of industry. 
If we compare, finally,the flexibility of the profit margin 
in the one or the other direction - up or down - we see that 
there is considerable assymetry. There is a kind of ceiling, 
determined by the limit of the growth rate (given by bottle 
necks, ultimately by the limits to the speed with which a 
society can learn). But there is hardly a well defined floor. 
Is the inflexibility of profit mark-up - down wards - absolute? 
It would hardly seem plausible even with widespread oligopolistic 
structures; since long term growth rates, within the historical 
experience, for example in America, were in the range of 4 or 5 
to 0 p.c. it would seem that changes in (long-term) utilization 
would have had to be rather large to accommodate them. But 
there is, of course, the budget deficit which, as explained 
above, may contribute a lot though probably not all to the
	        

Note to user

Dear user,

In response to current developments in the web technology used by the Goobi viewer, the software no longer supports your browser.

Please use one of the following browsers to display this page correctly.

Thank you.