ECONOMIC CAPITAL / CREATED CAPITAL
PHYSICAL CAPITAL
TECHNOLOGY, MACHINERY, PRODUCTS, PROCESSES, VEHICLES, INFRASTRUCTURE
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Navigation
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PHYSICAL CAPITAL
TECHNOLOGY, MACHINERY, PRODUCTS, PROCESSES, VEHICLES, INFRASTRUCTURE
Physical capital is the product, factories, plant and equipment associated with business operations, as well as the infrastructure used for transport, communications, energy and so forth owned in both the public and private sector. Physical capital has costs to operate, needs maintenance and depreciates over time. The efficient performance of this physical capital determines how much quality of life there can be relative to the consumption of non-renewable resources.
Physical capital is man made. Some of the physical capital is owned by people, some is owned by companies and some is owned in the commons by the state. There are factories, machinery and equipment, jigs and dyes, vehicles, furniture fixtures and fittings that are assets of companies and on their balance sheets. There are roads and bridges, airports, seaports and water systems and sewer systems that have been built by government and are maintained by government or others. There is working capital, and specifically inventory of product, that is mainly owned by private sector organizations. There are products that are consumed by people to satisfy their needs and their wants. There are houses owned or occupied by people. There are commercial buildings. There are city transit systems. There are parks, theaters for cultural events and stadiums for sports events. Money is in part a piece of physical capital in the sense that physical money (or its virtual equivalent) is needed to make transactions efficiently. Everything in the physical capital has been built using resources and impacting the environment.
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GO SlideNav-for-TVA #PC
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Infrastructure ... Flood Control
Global crisis
There have been major floods in all sorts of place ... Why?
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Open file 0882
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Infrastructure ... Flood Control
Global crisis
There have been major floods in all sorts of place ... Why?
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Open file 982
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Country ... USA ... Infrastructure -v- Politics -v- Big Business
The Koch brothers just kicked mass transit in the face
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Open file 9154
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An Overview of Physical Capital(TO COME)
Physical Capital is an important enabler of a productive modern economy.
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Physical Infrastructure(TO COME)
Physical infrastructure
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Housing (TO COME)
Housing
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Commercial Office Buildings (TO COME)
Commercial Office Buildings
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Business Fixed Assets (TO COME)
Business Fixed Assets
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Products (TO COME)
Products
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Issue
Infrastructure
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Basic observation
Infrastructure has deteriorated in most parts of the “south” and is mostly dysfunctional, making any industrial productivity low.
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Prevailing response
A few big infrastructure projects are in process and on the drawing board. Some are going to add value, but the maximizing of value from these projects rarely happens because of the value export of the typical business model. Meanwhile little is done to upgrade a deteriorated infrastructure.
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A better response
Rehabilitation of deteriorated infrastructure is a priority, and best done by using local contractors and a maximum of local content. The process of infrastructure building should maximize value adding, and this means local labor, local capacity and local capital to the extent it is available.
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