With depth and lucidity, Böhm-Bawerk surveys and critiques failed theories of interest from antiquity to modern times, presents a full theory of the structure of. Buy Capital e interés by EUGEN VON BOHM-BAWERK (ISBN: ) from Amazon’s Book Store. Everyday low prices and free delivery on eligible. Capital e interés by EUGEN VON BOHM-BAWERK at – ISBN X – ISBN – Innisfree – – Softcover.

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In various concrete ways he adapts or rearranges nature—never, of course, changing her laws or acting contrary to them, but varying the causal connection of natural processes in such a way that, bawerj a large extent, he remakes the natural world to suit his purposes.

The Abstinence theory, on the other hand, is founded on the negative part played by the capitalist.

Online Library of Liberty

The power wielded by the owners of wealth in the present day needs no statement. They did not notice that, in what Adam Smith and they themselves called “capital,” there were two fundamentally bwwerk conceptions; they considered the capital of which they spoke in the theory of production as identical with the capital which bears interest.

Natural interest, on the other hand, if not obtained though the labour, is certainly obtained under co-operation with the labour of the capitalist-undertaker; and to superficial consideration labour and co-operation with labour are too easily confounded, or, at any rate, not kept sufficiently distinct. The one is positive—that capital does something; the other negative—that the capitalist abstains from doing something. But the one party, and baderk the majority, innteres more about the instruments of production, while the other thought more about the source of income; and interex they attached to capital the characteristics of two different conceptions.

The more usurers there are the better; their emulation will press down the rate of interest. This is the true importance which attaches to our entering on roundabout ways of production, and this is the reason of the result associated with them: Of greater importance is the second phase, although neither as regards the number of its writers nor the very imposing array of arguments they introduced.

In the one case the capitalist is paid because the capital he bhom produces, or helps to produce, new wealth; in the other he is paid because he abstains from diminishing wealth already produced. But the plausibility of the Productivity theory is the parallelism it assumes between labour inetres capital—the suggestion that interest is wage for capital’s work.


Men were fighting, as we shall calital, not for the centre of the problem, but for an outpost of it which, from a theoretical standpoint, was of comparatively subordinate importance. A rich man who has plenty of landed property and general income, but little ready money, applies for a money loan to one who is not so wealthy, but happens to have a great command over ready money.

Eugen Böhm von Bawerk

Capital is productive, but interest is not its product. Instead of “striving after happiness” we may capihal the expression “striving after self-preservation and self-development,” or “striving after the bogm possible furtherance of life”; or we may, with equal propriety, use the words, “striving after the most complete possible satisfaction of wants”; for the expressions we are so familiar with in economic terminology, “want” and “satisfaction of want,” mean, in the last resort, nothing else than, respectively, the unsatisfied craving of man to be put under conditions he thinks desirable or more desirable than those he has, and the successful obtaining of such conditions.

But it would be easy to misunderstand the precise incidence of this criticism, and perhaps it is well to point out what it does and what capita, does not affect.

Thus the Hire or Rent which an owner receives for the letting of a house is a Gross interest; and if we wish to ascertain what we may call the true baeerk of capital contained in it, d must deduct a certain proportion for the running costs of upkeep, and for the rebuilding of the house at such time as it falls into decay. From this short abstract it will be seen that Besold is a frank and able follower of Molinaeus. Value cannot come from production.

Capital and Interest: A Critical History of Economic Theory – Online Library of Liberty

To lose as consumer what one gains as producer is a game of Beggar my Neighbour which would scarcely commend itself to business men. The former, sometimes called Sinking, Wear and Tear, Repairs, or Replacement of Capital Fund, secures that fixed capital, or its value, is replaced in the proportion in which it is worn out, and thus provides a guarantee that the value of the parent capital is not encroached upon, or inadvertently paid away in dividend.

But there are other powers which can easily do what is denied to us, and these are the powers of nature. The proof from authority being thus disposed of, Calvin turns to the rational arguments usually given for the prohibition. First of all, this was the beginning of the division of capital into two independent conceptions—the conceptions afterwards distinguished as National Capital and Individual Capital.


More corn than this, in the shape of bread and farinaceous food generally, he has no desire for. As things are, he pays nothing on 1st January; he has the use of the plane over the year; by 31st December the plane is consumed; and next day he has to pay over to James a precisely similar plane plus a plank.

This Agio on present goods is interest. If consumption is only a single exhaustive use, and use only a prolonged consumption, the payment for “use” of Capital must be included in the price of capital. It so happens, however, that these really distinct problems are accidentally linked together by one name; they are problems of Capital. In what follows I shall try to avoid this error, and wherever anything depends upon these fundamental truths—which will very often be the case in a discussion on capital—to keep unobtrusively but firmly in touch with them.

Our weak yielding hand cannot overcome the cohesion of the rock, but the hard wedge of iron can; the wedge and the hammer to drive it we can happily master with little trouble. The legal prohibitions of interest may, of course, be taken as evidence of a strong and widespread conviction of the evils connected with its practice.

Exactly in the same way is it unjust for a man to lend things of this sort at interest. Please refer to our privacy policy for more information on privacy at Loot.

It may be that, besides identity of name, we shall find many inner relations between the two series of phenomena and the two problems;—our investigation shall decide that later. First, he may go to the spring each time he is thirsty, and drink out of his hollowed hand. But to account for the origin of capital by capitxl from consumptive use is one thing; to account for interest is another.