Different query, no rancor

["David Schanoes" <Schanoes@xxxxxxx>]

I've been looking at some numbers compiled by the Census Bureaus's
surveys of manufacturers and the BEA NIPA tables on fixed asset growth
for a piece on the US Steel industry-- (Overproduction in a Downsized
Place).  It seems, somewhat to my surprise, that 1973-1979 saw a rapid
expansion, a doubling,  of fixed capital assets.  That this rate is far
above that of the 80s is no surprise, but it is about equal to the 91-00
period, if I recall correctly-- perhaps exceeds it.

Now the base is smaller so in absolute terms the numbers are smaller,
but still 2X is 2 times.

I don't think corporate profits matched this rate of growth, which
distinguishes it in part from the 90s, but still after OPEC 1, I am a
little surprised.  I think the recycling of petro-dollars had something
to do with it, as the recycling of the petro dollars had a lot to do
with binding Latin America with ropes of debt.  But I'm not sure.

I think this fixed asset growth prevails throughout manufacturing as a
whole for 73-79.  Anyone else familiar with this and with an
explanation?

Thanks,
dms


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