Big ticket items, homes, cars, durable goods, machinery, etc. etc. eventually fall into disrepair or otherwise deteriorate to the point they no longer have market value.
Consumer goods have appreciably lower economic life spans.
Perishable goods (food) and disposable items dissipate wealth most rapidly.
Of course, I'm explaining this in terms of personal items that constitute most people's personal wealth. But the same principle holds true for large items owned by businesses and/or government: Buildings, machinery, roads, bridges, etc. etc. etc all eventually degrade (both physically and in value)-- and wealth is dissipated.
Wealth is not dissipated and you are talking about depreciation and durable (5+ year) goods. Any sound investor that buys property had better take the time, energy and money to maintain the structures that they purchase.
BTW .... name an example of a road, or a bridge that has actually lost value.
Real estate is one of the few things that almost always appreciates in value.
Big ticket items, homes, cars, durable goods, machinery, etc. etc. eventually fall into disrepair or otherwise deteriorate to the point they no longer have market value. Consumer goods have appreciably lower economic life spans. Perishable goods (food) and disposable items dissipate wealth most rapidly.
Of course, I'm explaining this in terms of personal items that constitute most people's personal wealth. But the same principle holds true for large items owned by businesses and/or government: Buildings, machinery, roads, bridges, etc. etc. etc all eventually degrade (both physically and in value)-- and wealth is dissipated.
So, regardless of whether we're talkin about services or manufactured goods, eventually all wealth is dissipated? Sounds like our standard of living should be continually dropping. It's not so there must be something happening that you're not explaining.