Is that an example you made up to illustrate your point about BLS cap util stats, or does the BLS really think capacity increases when making a faster chip? Would GM's cap util increase by making faster cars? Larger cars?
Yes they do. I was not aware of it until I began digging into some of the numbers and confirmed it with both BLS and the Fed. Regarding the cars, They do definitely factor in things like reliability (this would be factored over time), features (like climate control or power windows even if there is no added labor or cost to the builder), and fuel economy, among others. I would assume that horsepower or torque would also be a factor. My example about processors is better because it is more easily quantified and they told me so specifically. But I have had conversations with and read papers by someone who has been very influential in the implementation of this with BLS and automobiles and appliances were both cited as strong examples. I am not privy to all of the factors but I think what is important is the fact that they do use this in their calculations so it has to be considered when looking at the data.