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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Bphm am I to transform these into spectacles? It was immediately recognised that a very notable importance as regards production attached to that class of goods which people now began to call capital par excellence; and this became the occasion of a great many profitable applications of the new conception to the theory of production.

If the formula, however, is considered to contain a scientific description of interest, we must take the word “use” in something like its ordinary signification, and consider the “use of capital” as something distinct from the capital itself which affords the use. Are we to conclude then that durable goods admit of an independent use caital independent value, and that perishable goods do not?

What one wishes to believe, says an old and true proverb, that one easily believes. The theory of capital has to reckon with a number of facts which history and statistics have not recorded, partly because in their nature they could not, partly because attention has not hitherto been drawn to the importance interex these facts.

Not that any one can get the monopoly of time, and not that time itself has any magic power of producing value, but that the preference by the capitalist of a future good to a present one enables the worker to realise his labour in undertakings that save labour and increase wealth. I have therefore strong reasons for following the good old custom, and prefacing my theory by some fundamental truths that stretch over into the neighbouring sphere of the natural sciences.

If, however, we demand an answer to what we have formulated as the true problem of interest, we shall make the discovery that the Productivity theory has not even put that problem before itself.

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The goal of each section is to present the fairest possible case for the theory, examines its claims in detail, and finally reveals its most profound errors.

Just as we control and guide the immediate matter of which the good is composed by one friendly power, and that power by a second, so can we control and guide the second by a third, the third by a fourth, this, again, by a fifth, and so on,—always going back to more remote causes of the final result—till in the series we come at last to one cause which we can inferes conveniently by our own natural powers.

When the actual facts of the relation between interest and capital, with all its essential characteristics, are described and fully explained, that problem will be solved. The peculiar spirit of Christianity worked in the same direction.


It was capitak soon superseded by a third. Schools of economic thought.

Eugen Böhm von Bawerk – Wikipedia

The fifty shillings interest he pays seems almost an inadequate return for the added productiveness given to his labour over the year. Thus it was inevitable that its collisions with the economical world should become much more numerous and much more serious. The most noteworthy of these are: So long as this one is not present the conditions are unfulfilled, and there cannot be the desired result.

To the old objection of Thomas Aquinas, that the inreres who takes interest either sells the same thing twice, or sells something that has no existence at all vide p. The Use theories, which are more or less scientific expansion of the familiar formula, “Interest is the price paid for the use of capital,” are shown to base interest, which is notoriously an income obtained from all kinds of capital, on an analogy drawn from one special kind of capital, viz.

The direct use of a good is here replaced by the employment of the good, and the “most useful ” is translated into the ” best paying,” or “most remunerative. Thanks to banking systems and facilities for investment, nearly all wealth that is not actually being consumed by the owners is made available to supply this double demand. Here there is no immediate bawek direct method of production. The fundamental ideas of my interest theory are, I believe, unusually simple and natural.

Too weak to hazard open war against the principle of prohibition, the business world yet managed to prevent its strict and complete legal enforcement, and to establish a number of exceptions some direct and some indirect. Meanwhile we may note one significant interss in all these transactions,—that the emergence of interest is dependent on a certain lapse of time between the borrowing and the paying.

If wage were a fixed point—say determined at the subsistence inetres, as the Iron Law capiral calculation of the rate of interest would be comparatively easy. Now, thanks to well-known motives, wealth in normal circumstances increases faster than population. If so, interest cannot be the price of the “use” of capital, as interest is paid for all capital, whether durable or perishable. And this investigation could not be one that was content to point out the obvious and striking forms of the phenomenon, but one that would cast light on its more homely forms.

He will let his judgment as to the causes of the phenomenon of interest be guided, to some extent, by principles of expediency—which is wholly and entirely bad; and he will let his judgment as to the advantages of interest as an institution be, to some extent, directly guided by purely theoretical considerations—which, at least, may be bad.

As Mises said, this voluminous treatise is the royal road to understanding of the fundamental political issues of our age. How slight a claim this explanation has to the dignity of a scientific theory appears in its practical definition of interest as the whole return to capitalist production which is not accounted for by labour.

On the one side are the Capitalist Undertakers. This surplus is not accounted for by profits, although often confused with them.


Eugen Böhm von Bawerk

He pays it ex proventu, out of the gain that he makes with the money. The economist might quite well decline to answer this question. Cxpital he gets his convictions more from impressions he receives than from capita argument. Once the Word of God was made victorious on earth, a hostility immediately showed itself, against which the righteousness of the new laws had to be defended.

First, I may work the loose stones back and forward with my bare fingers, and break off what can be broken off. The loan then will be a transfer and sale of this “use,” and it becomes intelligible how, at capktal end of the loan period, the capital lent is returned undeteriorated in value; it was not the capital that was lent, but the use of the capital.

The Trade Unions give bqwerk labourers gohm certain power of waiting, and tend to force employers, as a class, to give up at least that portion of profit which is pure exploitation. But even where he does not personally take part in the carrying out of the production, he yet contributes a certain amount of personal trouble in the shape of intellectual superintendence—say, in planning inteees business, or, at the least, in the act of will by which he devotes his means of production to a definite undertaking.

But it is perhaps better to consider the undertaker as the owner of capital, and take the question simply as one between Wage-Earners and Capitalists. The essence of interest, in short, is Discount. I am short-sighted, and wish to have a pair of spectacles. Accepting this answer we should expect to find the phenomenon of interest most easily studied in the case of a Limited Liability Company, where the personal exertion of the shareholders is limited to choosing the investment, subscribing the capital, and receiving the dividends.

In other words, is it something obtained either by chance or force, and corresponding to no service rendered by anybody or anything; or is it something connected with capital or the capitalist that, economically speaking, deserves a return or a wage?

The difference between the two will be found in the few pregnant sentences on pp. It must be added that, in an organised economy, “utility” becomes a more complex conception. It is, if one may use such an expression about mundane things, capable of an everlasting life.

If, further, it be maintained that, along with the money itself, its use also has passed over into the legal property of the borrower, and that he therefore is paying in interest for his own property, Molinaeus answers No. All mainstream modern browsers have cookies enabled by default, so if you’ve been directed to this page it probably means you’re uisng a weird and wonderful browser of your own choosing, or have disabled cookies yourself.

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