But as soon as this new technique has spread through the branch and all firms have increased their outlays for constant capital also, workers adjust wages in proportion to the higher productivity of labour. The outlays for constant capital having increased, wages having been increased now also, this means that for all firms the rate of profit is lower.
The spread of a new technique within a company and an increase in fixed capital investments lead to workers adjusting their wages to match the increased productivity. This change in labor costs impacts the profitability of businesses, resulting in a decrease in the overall rate of profit for all companies.