Re: General Theory Seminar--Investment vs. Liquidity

["William B.Ryan" <william_b_ryan@xxxxxxx>]

Paul Davidson wrote:
http://http://csf.colorado.edu/forums/pkt/2000/msg00071.html

"...Only the purchase of newly produced real capital goods is an
investment expenditure in Keynes' macroeconomic analysis."

In real terms, isn't investment the process of improving the quantity and
quality of capital?  And shouldn't capital be defined broadly to include
improvements to land and labor?

In financial terms, shouldn't investment correspond to increasing
entrepreneurial spending?

Specifically, if entrepreneurial spending is at a reduced level from what
it formerly was (such as during the Great Depression), would not spending
to re-open a closed factory and re-employ unemployed labor constitute
investment?

Bill Ryan
william_b_ryan@xxxxxxxxxxx
http://www.geocities.com/CapitolHill/Senate/7018

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