Manufactured Capital

In the FairShares Model, economic capital is differentiated from financial capital. Economic capital is generated by the use value of manufactured goods (machinery, tools, buildings, goods). Your enterprise/project may use up goods created by other enterprises, or transform goods obtained into new goods. Economic capital is increased if the enterprise/project manufactures products that enable itself (and others) to engage in more (efficient) economic activity. In the FairShares Model, 'economic capital' is defined as the productivity that comes from well-manufactured goods. When considering economic capital, consider how the enterprise/project uses up and/or adds to the quality of manufactured goods (tools, machinery, premises) available to primary stakeholders.

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Return to Capital