savings Capital
Accumulated wealth used to generate further production
format_quote Quotes
"The third volume of Marx's Capital contradicts the first. A system erected on a certain fundamental principle receives, in the third volume, a superstructure in direct conflict with it. The contradiction is obvious and enormous."
menu_book Karl Marx and the Close of His System
View Full Quote"Present goods are, as a rule, worth more than future goods of like kind and number. This proposition is the kernel and center of the interest theory."
menu_book Capital and Interest
View Full Quote"The essential difference between rich societies and poor societies does not stem from any greater effort the former devote to work, nor even from any greater technological knowledge the former hold. Instead it arises mainly from the fact that rich nations possess a more extensive network of capital goods wisely invested from an entrepreneurial standpoint."
menu_book Money, Bank Credit, and Economic Cycles
View Full QuoteView Full Quote"Remove the family motive, the prospect of passing one's enterprise to one's heirs, and you undermine the economy. You do not destroy it entirely, but you handicap it."
auto_stories Books
Capital and Interest
Böhm-Bawerk's monumental three-volume work establishing the Austrian theory of capital and interest. He demolishes all prior theories of interest (...
Read MoreKarl Marx and the Close of His System
Böhm-Bawerk's definitive refutation of Marxian economics, exposing the fatal internal contradiction between Volume I and Volume III of Das Kapital....
Read MoreMan, Economy, and State
Rothbard's comprehensive treatise on Austrian economics, building on Mises's praxeology to systematically reconstruct economic theory from first pr...
Read MoreMoney, Bank Credit, and Economic Cycles
The most systematic modern statement of the Austrian theory of the business cycle, demonstrating through history, legal theory, and economics that ...
Read MorePredatory Value Extraction
William Lazonick's book-length case (co-authored with Jang-Sup Shin, Oxford University Press, 2019) against the 'maximizing shareholder value' ideo...
Read Moreperson Authors
psychology Concepts
Financialization (Downsize-and-Distribute)
A term for the shift in large-company management from a 'retain-and-reinvest' model, where profits are kept in the firm and reinvested in R&D, capa...
Learn MoreRoundabout Production
The Austrian insight that production becomes more physically productive the more it is broken into indirect, capital-using stages spread out over t...
Learn MoreTime Preference
The economic principle that individuals value goods and services more highly in the present than in the future, all else being equal. This preferen...
Learn Morebalance Sophisms
A Dividend Is Not Money Destroyed
"Billionaires prefer paying shareholders over hiring: for every euro spent on jobs, LVMH spends 239 euros on shareholders."
Read the rebuttalNo Detectable Bump Is Not 'They Don't Invest'
"Billionaires don't invest: companies whose shareholders were subject to France's wealth tax (ISF) did not invest more once it was abolished."
Read the rebuttalSpeculation Is Not the Opposite of Usefulness
"Billionaires don't finance the real economy: 96% of financial transactions are purely speculative."
Read the rebuttalEmployees Aren't the Only Source of Value
"A business owner can only get rich off the productivity of the people he employs."
Read the rebuttal