Examples of capital goods

With the name of capital all the goods are known that in the productive process are destined to the combination with other factors of production so as to obtain final goods for consumption.

The capital good constitutes a form of capital, which is the resource from which some people are able to transform a series of goods that have no value for consumption (or have it to a certain extent), into final goods that do. they have (or have it to a much greater extent than the individual combination of factors).

The development of capital goods is one of the most important phenomena of the capitalist mode of production, and the fundamental subdivision that Karl Marx, its chief critic, made of capitalism separates people among those who own capital goods and those that are not: in the production process, the latter only have their workforce. Capital goods that allow the subsequent production of consumer goods are produced by heavy industry . The capital good is defined by taking a product (in some cases a raw material from nature, in other cases an intermediate good also made) and transforming it into another with different characteristics, which is usually called

consumer good but eventually it may be another capital good, since obviously some productive process determines them. Consumer goods are the last link in the production chain (produced by light industry ).

In use, capital goods do not always remain the same but instead undergo a process of attrition called amortization , by which they lose a certain value: the production process must not only be enough to compensate for the difference between the value of the final goods and raw materials, but must be added compensation for the loss of capital value during the process.

The function of the capital asset is, through the production process, to transform money into more money , which is the equivalent of investments in money: this is why the money that receives a profit as an interest rate is called also capital.

The way in which the capital asset is generated is usually easily synthesized through an example, that of the lonely man on the island who spends his days jumping and dropping 10 fruits from the trees a day, until a week is spent build a ladder and then you can go down 50 a day.

In the aggregate, the synthesis is that of the total of what is produced by a society, a part of consumption must be resigned if one wants to obtain capital goods , which in the future will mean a greater product and then a greater potential for consumption (and construction of capital goods). This development of capital goods (as well as other forms of capital) is called investment . China is one of the countries in the world with the highest percentage of the product destined for investment, with a fraction close to 50%.

Examples of capital goods

1. Sewing machine.
2. A bender.
3. Models for steel casting.
4. Pumps for fluid handling.
5. A car belonging to an organization.
6. Iron cutting machine.
7. Machinery for the agricultural industry.
8. Pressure vessels.
9. A lathe.
10. A cargo ship.
11. A route of a country.
12. A hammer.
13. A drilling rig.
14. A truck to transport cargo.
15. A drill.
16. A patent, as the right to use a certain product or idea.
17. A chainsaw.
18. Equipment for ventilation, in a company.
19. Equipment for water treatment.
20. A building for a large company.

 

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