software as capital

[Doug Henwood]

Greenspan, Kudlow, & others argue that it's wrong not to count 
software expenditures as depreciable investment rather than an 
expensed current cost, and that NIPA figures underestimate investment 
and growth. If investment is understated than profitability is 
overstated, even though Greenspan says it's probably understated, but 
let's forget about that for now. My impression is that if software is 
a capital expenditure - and why not, conceptually? - it depreciates 
very rapidly, at least by my personal experience. Maybe I upgrade too 
much. Any other thoughts?

Doug