The government now regards software as capital & ketchup as a vegetable.


On Fri, Apr 25, 2008 at 10:42:47AM -0500, Forstater, Mathew wrote:
> I've seen "natural assets" used. Would that accomplish the goal of
> highlighting their importance without raising all the thorny problems of
> using "capital"?
> 
> Economists don't even know what "capital" is, without the problems of
> applying the term to labor, natural resources, and social networks.  On
> the one hand, the word refers to money or finance capital, on the other
> to industrial capital or capital goods.
> 
> Great quote (Joan Robinson, of course):
> 
> "Capital" is not what capital is called, it is what its name is called.
> 
> I have my students mediate on that like a Buddhist koan.
> 
> By the way, natural resources must be extracted and refined, and so are
> "produced" just as tools and machines are.  So some of this is due to
> continued confusion.
> 
> mat f.
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-- 
Michael Perelman
Economics Department
California State University
Chico, CA 95929

Tel. 530-898-5321
E-Mail michael at ecst.csuchico.edu
michaelperelman.wordpress.com
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