Abstract:

For my part I feel that first I must ask the question - "What are durable and capital goods?". Obviously it is necessary to make up our mind as to the true definition before we approach the matter in any detail. Does chewing-gum find itself in the market for durable goods whilst chocolate remains in the consumer bracket; or do we refer to lubricating oil as a durable product whilst we accept gasoline as a consumer product? Should a car used solely for restricted private weekend driving be regarded as capital goods, and cars used every day over long distances for business purposes; be termed durable goods? It is clear that other than in those circumstances where it is self evident, the classification must depend upon the point of view of the person paying for the goods themselves.