Capital Goods Are Consumed But Are Not Consumer Goods.

If you live in a cave and eat berries from the bush next to the cave then you may not be dependent on capital goods but then you will not be the one reading this and so if you are reading this then you are dependent on capital goods.

Capital goods are goods that are used to make consumer goods and other capital goods. Pretty much everything that you use to satisfy your needs and desires is wholly dependent on capital goods. Capital goods come into existence because there is capital available. In other words, someone(s) saved enough for their savings to be used to pay for the resources needed (human resources included) in the lengthy production process that occurs and before anything that can be consumed is produced.

Capital is good, it is very good, because it is absolutely necessary for everyone except for the naked cave-dweller who will quickly perish without it.

Capital goods are not eternal or magical. They are subject to the forces at play in the world and so they deteriorate over time or become obsolete. In other words, just as important as the original capital is new capital to sustain what is and to make progress.

None of this has anything to do with ‘crony capitalism’ which is the consequence of statism. The State protects its cronies from market competition and in return both the State and its cronies get richer while the poor get poorer. This perverted outcome that results from crony capitalism is the version of ‘capitalism’ that the State-controlled ‘education’ system ‘teaches’ (indoctrinates) and this perverted outcome that results from crony capitalism is also the version of ‘capitalism’ attacked as unseemly by the State-controlled media as part of its propagandizing of the population. Also part of that propaganda is, of course, the savior – the State is what is needed to save people from evil capitalism. Hogwash and economic nonsense!

Capital is a beautiful human expression of choice that is used creatively as part of human action to make things better; advancing civilization. Do yourself a favor and cure yourself from the disease of the ideology of statism.

Twitter @DivineEconomy

Sign up for my very appealing newsletter! @

RSS Feed


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s