Physical Volume of Output, 1900-1960


 Although national income figures do not reflect

changing production precisely, the same trend of

production toward manufacturing and machinery can be

discerned from data in Table 13 showing rates of growth

in physical volume of output. The rate of growth in

metals-using industries has been greater than that of

non-metals industries, excepting chemical, petroleum,

and rubber products, all important to transportation

and power machinery, and excepting paper products.

 Larger amounts of machinery have helped to

produce larger amounts of output, but the relationship

between total output and the amount of capital needed

to produce it cannot be figured with precision.

 the interpretation of movements in the
 capital-output ratio (since 18507 is not easy and
 requires more detailed figures than are now avail-
 able. The variations in the ratio reflect in part
 the shift toward capital-intensive sectors
 (railroads and public utilities) and then the
 opposite shift toward sectors that require
 relatively little capital (services). The movements
 also reflect changes in production functions within
 sectors or industries, particularly the relative
 importance of capital-saving technology and
 changes in the degree of utilization of plant and
 equipment.(2)


 2Raymond W. Goldsmith, "National Wealth: Estimation,"
 International Encyclopedia of the Social Sciences, 1968,
 XI, 57.