| i don't want to get hung up on terminology, but just so we're all speaking the same language, this is the definition of capital consumption:
The amount of money which must be withdrawn from annual gross income and reinvested to replace the capital used up in production. The reinvestment, however, need not be in the "used up" assets.
this term shows steve's comments about consumption to be technically inaccurate - which was why i decided to bring "capital consumption" into play. |