By John Bates Clark
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They are as truly ordained to be ultimately used up as are food and clothing, and this is true VARIETIES OF ECONOMIC GOODS 27 of the most durable things that are artificially made. Walls, roadways, bridges, and buildings slowly deteriorate till the time comes when for productive purposes their room is worth more than their company. Why the Perishability ot Capital Goods does not put Capital out ot Existence. - Perishability is the most striking trait of capital goods. Each particular one comes and goes, but there is always a stock of them on hand; for when one is on the point of going, another is ready to take its place and keep up the succession.
An instrument wears itself out in one industry, and instead of being succeeded by a like instrument in the same industry, it is succeeded by one of a different kind which is used in a different branch of production. Goods have not moved from one branch to another, but capital has done so. How Capital itself may be Destroyed. - When we speak of capital as permanent, we mean that using does not destroy it as it destroys the tissues of which it is composed. ffect the volume of the fund as a whole; but production itself leaves it intact.
If we start with nothing but the earth in its natural state, inhabited by empty-handed men, and seek to know what is necessary in order that some wealth may be created, we find that nothing is absolutely necessary except labor. By working for a few minutes it is possible to get something that will minister directly to wants. Yet if men begin operations in a state of such poverty 1 On the ground of convenience, we may classify labor as physical or mental, according as the work of muscle or of brain is especially prominent.
Essentials of Economic Theory, as Applied to Modern Problems of Industry and Public Policy by John Bates Clark