Why does it matter? Because, as
The New York Times noted in a rare piece crediting President Trump’s tax breaks and deregulatory policies with the upturn in business optimism: “Investment in new plants, equipment and factory upgrades … bolsters economic growth, spurs job creation — and may finally raise wages significantly.”
Rising capital spending means increased productivity; with new machines and more efficient plants, workers are able to make more goods. Economists have long cited the lackluster productivity growth of recent years for sluggish wage gains.