Capital and Interest Theory

Displaying 1 - 10 of 668

Böhm-Bawerk Explains Why Marxist "Exploitation" Is Nonsense

SocialismCapital and Interest TheoryProduction Theory

Blog11/11/2020

Marx’s theory of exploitation forms the foundation of all his work. But Marx couldn't tell the difference between profit and surplus, exposing the incoherence of his theory. 

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Why Socialism Won’t End Worker "Exploitation"

Labor and WagesSocialismCapital and Interest Theory

Blog11/03/2020

Economic realities mean the socialist state would need to utilize the same method of discounting wages as capitalists do. The only difference is that under socialism, bureaucrats would do the "exploitation."

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The Saving Problem in America: Alternatives and Reforms

Monetary PolicyTaxes and SpendingCapital and Interest Theory

Blog09/15/2020

Savings are the foundation for a productive and advanced economy. Unfortunately, governments insist on policies that make it harder for ordinary people to save.

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The Social and Economic Side Effects of Negative Interest Rates

InflationCapital and Interest Theory

Blog08/26/2020

Negative interest rates lead to zombie firms, rampant consumerism, and growing obstacles to entrepreneurship. 

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The Social Consequences of Zero Interest Rates

Media and CultureMonetary PolicyCapital and Interest Theory

Blog07/04/2020

As Japan has shown, ultralow interest rates can greatly affect a society that was once impressively focused on innovation and investment.

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Rothbard on Why We Need Entrepreneurs

CapitalismCapital and Interest TheoryEntrepreneurship

Blog04/20/2020

Capitalists and entrepreneurs serve distinct functions in the real economy. Capitalists save money that then maintains production processes until final goods are produced. Entrepreneurs adjust the capital structure in light of uncertainty to produce the most desired goods. Capitalists are ...

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Keynes and the Euthanasia of the Rentier

Financial MarketsCapital and Interest TheoryOther Schools of Thought

Blog04/04/2020

Over eighty years ago, Keynes condemned the rentier and welcomed his future disappearance. Following in his footsteps, politicians and central bankers today are ever closer to effectively bringing this about.

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The Era of Boom and Bust Isn't Over

Booms and BustsBusiness CyclesCapital and Interest Theory

Blog01/31/2020

Central banks have done nothing to end the boom-and-bust cycle. Instead, their unscrupulous interventions in credit markets just prolong the boom. But it's a huge mistake to assume that bringing market interest rates to zero will create a perpetual boom.

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The Bank of England's Governor Fears a Liquidity Trap

Money and BanksCapital and Interest TheoryMoney and BankingOther Schools of Thought

Blog01/17/2020

The demand for goods is not constrained by the amount of money, but by the production of goods and services available to trade for money.

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What Is Capital?

Capital and Interest Theory

In order to expand production and increase productivity — and thus increase the standard of living — it is necessary to use capital. And so it makes sense to pay interest on capital lent, so as to encourage the maintenance and production of capital for the future.

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