Re: [OPE-L] how industry-specific are most capital goods?

From: Jerry Levy (Gerald_A_Levy@MSN.COM)
Date: Fri Apr 20 2007 - 07:59:32 EDT


> >  As regards computers they are now completely integrated to all of
> > industry (except for a few places in the world) this is true, but when
> > we talk about capital goods, they constitute an indefinitely small
> > part of the total value of the capital stock. Perhaps the equivalent
> > of a few days paycheck for one employee.
> Jerry wrote:
> "On what basis did you come to that conclusion?"
> Do you mean my last statement on the cost of labour?


Hi Martin:

No, I questioned  the empirical basis for the claim that computers and
computer  components constitute "an indefininitely small part of the total
value of the capital stock"?

> That statement was
> too exaggerated I admit. I tried to make a point about the tremendously
> fast cheapening of computers in our days, but obviously a "few days
> paycheck" is stretching it too far.

Yes, I agree that computers have been cheapened (although, not at as
great a rate as most industry experts predicted). But that was not the
issue: the issue is how industry-specific are most capital goods?

In solidarity, Jerry


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