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.
When a new technique becomes widespread within a company and all businesses invest more in their equipment, workers' wages increase to match the higher output they produce. This increased investment in fixed capital leads to higher wages, but it also means that the overall rate of profit for all companies is lower.