Capital Goods denotes specific produced means that mediate later production of goods or services. Mises distinguishes capital goods from capital as a tool of monetary calculation; Lachmann emphasizes heterogeneity and their place in plans. State the definition used instead of confusing it with an accounting category.
An oven in a bakery produces bread for customers; similar equipment at home may serve personal consumption. Mises connects the distinction with intended use. Durability or a high price alone therefore does not determine an object’s economic role. [Mises — Human Action, XV]
Mises expressly separates concrete goods from capital used in calculation. A monetary sum compares valuations of unlike items but does not make an oven and a van physically identical units. A valuation change alone also proves no increase in productive capacity. [Mises — Human Action, XV]
Lachmann emphasizes each capital good’s limited range of uses. A van cannot perform an oven’s function just because both cost the same. Trace individual resources’ properties and possible modifications; summing their prices does not contain this technical information. [Lachmann — Capital and Its Structure]
An oven needs suitable ingredients, a work process and delivery timing. Lachmann distinguishes complementarity within one plan from compatibility among different market plans. A working workshop alone therefore does not prove all suppliers and buyers have mutually consistent expectations. [Lachmann — The Meaning of Capital Structure]
Lachmann’s limited applicability means alternative uses may be less profitable when demand changes. Conversion can require time and resources, and some equipment may find no suitable place. A machine’s existence therefore does not guarantee preservation of its original economic value. [Lachmann — Capital and Its Structure]
Mises values available means by expected future services rather than only the labor once spent making them. Expensive equipment can lose useful applications. Historical payment differs from today’s expected contribution or available selling price. [Mises — Human Action, XVIII]
Mises distinguishes maintaining capital goods from monetary capital calculation. A repaired machine may function technically while demand for its output changes. Assess renewal through wear, future use and complementary resources, not just machine counts. [Mises — Human Action, XVIII]
A Bitcoin balance and a server running a service play different roles in a plan. This applies the distinction between means and their valuation, not an accounting classification rule. Check equipment’s contribution and complementary needs; holding money alone is not ready-made technical infrastructure. [Mises — Human Action, XV] [Lachmann — The Meaning of Capital Structure]
For the clearest picture, read this entry together with Stages of Production, Heterogeneous Capital, Economic Calculation, Opportunity Cost, Time Preference. The reverse links also lead from Time Preference, Economic Calculation, Socialist Calculation Debate, Entrepreneurship.