Doug Henwood wrote:
> matt hogan wrote:
>
> > Is capital more productive than labor? I seem to recall Doug
> >stating that productivity of capital is in a thirty year downtrend.
>
> According to the official productivity stats, yes. But the idea of
> the "productivity of capital" is problematic for several reasons.
> What is a unit of capital? There's no physical unit comparable to an
> hour of labor (and while there are all kinds of labor, you can at
> least average it all out), and how do you value a monetary unit of
> capital? How do you value the combination of hardware and software
> that allows me to type this at you? Does it include the university
> labor that went into the early versions of Eudora? Does it include
> Qualcomm stock at $1,000? Do we include all the Pentagon funding of
> (D)ARPA? Steve Jobs in his garage building the first Apple? Is all
> that captured in the price I paid for this computer, or what it'd be
> worth today (nearly 0)? And second, and not unrelatedly, capital
> equipment is fundamentally the embodiment of human labor - what is
> the machine's productivity but all the physical and mental labor went
> into it?
>
> Doug
--
Michael Perelman Economics Department California State University michael at ecst.csuchico.edu Chico, CA 95929 530-898-5321 fax 530-898-5901