People do not save and accumulate capital because there is interest. Interest is neither the impetus to saving nor the reward or the compensation granted for abstaining from immediate consumption. It is the ratio in the mutual valuation of present goods as against future goods.
A private graduate seminar presented at Mises University 2019.
Ignoring time preference is the fundamental error behind monetary planning. It is why in a successful economy, monetary intervention by the state is kept to a bare minimum, or preferably banished altogether.
Bob reviews the contributions of Böhm-Bawerk, Fetter, and Mises, and explains interest from an Austrian approach.
Bob continues his three-part series devoted to capital and interest theory in the tradition of the Austrian school.
The fallacy that labor-saving machines create technological unemployment has not only been disproved by theory but also by the whole history of mankind.
