Browsing the archives for the Ford tag.

Virtual Fixed Assets

Economic Reality, Virtual Reality
According to the US Bureau of Economic Activity, the real US economy (i.e. non-public sector) spends just over $1 Trillion / year on non-structural fixed assets.
This number excludes the cost of buildings, warehouses and factories but includes all household, farm, business, and non-profit organization spending on fixed assets.  A precise definition is found here.
Roughly half of that amount ($537 Billion in 2011) is on information processing equipment and slightly over half of that amount ($279 B) is software.
Spending on transportation equipment (trucks, cars, ships) was $232 B and industrial equipment (engines, lathes, robots, …) $178 B. Furniture and other types of equipment (e.g. agricultural, mining, oil rigs, …) was $194 B.
Within the $537 B on information processing equipment, is spending on computers ($79 B ) and network equipment ($77 B).  The 3rd largest sub-category after software is medical equipment at $72 B.
So the largest single spending area for fixed assets is for software which is a virtual asset! Henry Ford must be spinning in his grave!
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