That is from Spencer England of Spencer England’s Equity Review. He writes to me:
I think a major reason for the difference between net and gross investment is the growing share of Info Tech (IT) in business fixed investment. IT now accounts for over half of real business investment. But IT has a much shorter life span than traditional business equipment or investment in structures.
It is like going up a down escalator –you have to run harder just to stay even.
Here is a previous post on the investment drought, with another good picture. Karl Smith offers some related remarks, though I do not focus on transportation as he does, rather given his framing I would put more emphasis on our inability to replace industrialization with something comparably important.