Capital and Interest Theory

Presented by Rothbard at New York Polytechnic University in 1972.

John Calvin’s main contribution to the usury question was in having the courage to dump the prohibition altogether.

The time market determines the pure rate of interest. Price per unit of time may be wages or rent. The interest income will be earned by the capitalist who has assumed the task of advancing present money.

Economics begins with the concepts of scarcity and choice. If there was no scarcity it would all be free. Resources like time and materials need to be allocated to economically feasible uses. This will depend on the consumers' demand for the final product.

The objective of the corporate firm is to maximize profits and avoid losses - the same objective of the free market. But the costs are paid out before the income comes in. Stockholders will sell stock to shake up the managers.

Recorded in Vienna, Austria; 25 May 1988.

"Keynesians believe that long-run profit expectations, which have no basis in reality in any case, are subject to unexpected change. Economic prosperity is based on baseless optimism, economic depression on baseless pessimism."

Carl Menger, from his classic treatise, on the origins of the means of payment.

This audio Mises Daily is narrated by Floy Lilley.

A money-substitute can be embodied either in a banknote or in a demand deposit with a bank subject to check (”checkbook money” or depos

The task of the theory of money consists merely in dealing with that component in the valuation of money which is conditioned by its function as a