Business: Pressing a Capital Idea

Congress weighs a plan to spur investment by speeding depreciation

If there is one root to the evils gripping the nation's economy, it is a low level of investment. The U.S. spends only 9% of its national income on capital in vestment, vs. West Germany's 15% and Japan's 20%. Consequently, the country is living off — and eating up — its capital stock. Its plants and machines are aging, its competitive edge in world markets is softening, its productivity growth is falling, and its prices are soaring. The surest way to return to noninflationary increases in living standards would be to enhance...

Want the full story?

Subscribe Now


Get TIME the way you want it

  • One Week Digital Pass — $4.99
  • Monthly Pay-As-You-Go DIGITAL ACCESS$2.99
  • One Year ALL ACCESSJust $30!   Best Deal!
    Print Magazine + Digital Edition + Subscriber-only Content on

Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!