| Headline: Cyber economy should fear only the Euro state Source: Euromoney Date: May 2000 Author: David Roche
The major argument against this optimistic view is that the new cyber economy will destroy us all by creating competition so great that prices will collapse faster than costs. Then whole swathes of the traditional economy will be wiped out, as capital structures collapse. This is what Marx said would happen to capitalism. Over-investment would first substitute capital for labour and then produce massive excess capacity. That, in turn, would drive down the return on investment until the edifice of capitalism crumbled. Believing the opposite, which I do, may be an act of faith, not scientific measurement. But Marxist-style collapse hasn't happened and it won't now. |