Gerald Levy wrote:
> Michael P wrote in [OPE-L:761]:
>
> > In the recent debate about new capital, I think that it is important to
> > differentiate between capital used to produce consumer goods and
> > capital use to produce capital goods.
>
> Yet it is also important to note that the same fixed capital can be used
> to produce Dept I and Dept II commodities. E.g. industrial robots can be
> used to produce means of consumption (like automobiles) or means of
> production (like industrial robots). The flexibility of this type of fixed
> capital allows it to re-programmed relatively easily (in contrast to "hard
> automation" which was designed and engineered for only 1 purpose).
> Moreover, this type of means of production can be relocated to another
> plant or branch of production relatively easily (which causes it to
> depreciate less quickly and enhances its re-sale price).
>
> btw, industrial robots were introduced in consumer goods industries before
> they were applied to produce means of production (as in, e.g., a flexible
> manufacturing system that produces other robots).
>
> In solidarity, Jerry
--Michael Perelman Economics Department California State University michael@ecst.csuchico.edu Chico, CA 95929 530-898-5321 fax 530-898-5901