Open thread, Mar. 20 - Mar. 26, 2017

MrMind

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Um. Not in economics where it is well-defined. Capital is resources needed for production of value.

While capital is resources needed for production of value, it's a bit misleading to imply that that's how it's "well-defined" "in economics", since the reader is likely to come away with the impression that capital = resources needed to produce value, even though not all resources needed for production of value are capital. Economics also defines labour & land* as resources needed for production of value.

* And sometimes "entrepreneurship", but that's always struck me as a pretty bogus "factor of production" — as economists tacitly admit by omitting it as a variable from their production functions, even though it's as free to vary as labour.

Sure, but that's all Econ 101 territory and LW isn't really a good place to get some education in economics :-/

0g_pepper9y

The way I remember it from my college days was that the inputs for the production of wealth are land, labor and capital (and, as you said, sometimes entrepreneurship is listed, although often this is lumped in with labor). Capital is then defined as wealth used towards the production of additional wealth. This formulation avoids the ambiguity that you identified.