Why Is Capital Investment Consistently Weak in the 21st Century U.S. Economy?

At least since the crash of the dot-com bubble at the turn of the millennium, observers have puzzled over the weak levels of capital investment in the United States. This weakness has been especially pronounced in the last few years as the economy fitfully recovers from the deepest recession since the 1930s. Real capital investment has yet to recover previous levels even though the overall rebound is now in its sixth year. Capital investment is generally considered to be one of the principal sources of growth in productivity, innovation, and the overall standard of living. And, indeed, in the years since the onset of the current recovery all these indices have slowed in tandem with capital investment.

See also “Behind the Chronic Weakness of Capital Investment,” The Wall Street Journal, Thomas J. Duesterberg and Donald A. Norman (May 10, 2015)