Cambridge capital controversy

The Cambridge Capital Controversy was a debate in economics about how to measure the value of capital. "Capital" is the machines, buildings, and other equipment used to make things. Economists argued about how to calculate the value of capital and how it affected economic growth. It was a big debate and lots of different ideas were proposed before the controversy was settled. In the end, economists agreed that capital should be measured using its "investment cost" - that is, how much money was spent to buy the machines and other equipment in the first place. This new measure of capital allowed economists to better understand economic growth, and it remains important today.