In my book on Keynes, I argued that his neglect of replacement
investment left a gaping hole in his analysis.  In later works, I
explained how an insufficient level of replacement investment was
leaving the economy vulnerable.  Finally in 2007 (before the crisis) I
wrote about how this vulnerability would lead to a crisis.

On Thu, Aug 25, 2011 at 9:59 AM, Polly Cleveland <[log in to unmask]> wrote:
> I'd like to offer a slightly different, more micro, take on Mill's
> statement: Most investment is replacement investment.
-- 
Michael Perelman
Economics Department
California State University
Chico, CA
95929

530 898 5321
fax 530 898 5901
http://michaelperelman.wordpress.com