Let me ask a simple question about valuing capital at current costs. I
will first propose a rather bizarre situation. Suppose that a firm is
in an industry with lightening speed technical change. It invests a
huge amount in some capital good, which becomes obsolete in the course
of a year. Next year, it finds itself in the same situation, investing
in new equipment, which becomes obsolete. At the end of several such
years, it is bankrupt.
Could this firm have been profitable each year? If I understand Fred
correctly, it could.
By the way, I have a second question on an unrelated subject. Where did
Engels write about Sewer Socialists?
-- Michael Perelman Economics Department California State University Chico, CA 95929Tel. 916-898-5321 E-Mail michael@ecst.csuchico.edu