The problem with your data is the trend toward spending less on long-lived plant and equipment & more on software and IT equipment with a short life span. So, the economy needs more investment just to stay up to where it was earlier.
SA wrote:
> As for whether capital was shifted out of production, the proof is in
> the pudding. Here are the numbers I got for private fixed
> non-residential investment as a share of GDP:
>
>
> Inv/GDP
> 1930s 6.5%
> 1940s 6.7%
> 1950s 9.4%
> 1960s 9.8%
> 1970s 11.1%
> 1980s 12.1%
> 1990s 10.9%
> 2000-2007 10.7%
>
>
-- Michael Perelman Economics Department California State University Chico, CA 95929
530 898 5321 fax 530 898 5901 http://michaelperelman.wordpress.com