Author: Eugen Boehm-Bawerk
Publisher: Createspace Independent Publishing Platform
Published: 2017-09-04
Total Pages: 178
ISBN-13: 9781976087714
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The Positive Theory of Capital sees Eugen von Boehm-Bawerk explain the concept of capital, and how its nature defines the workings of the modern economy. Boehm-Bawerk commences this book by noting how books pertaining to the social science of economics call upon the physical sciences to support their arguments. Usually this connection relates to arguments surrounding production; however Boehm-Bawerk proposes to take the association deeper, without venturing too deeply into the theory and jargon of natural or physical science. The distinguishing parts of Boehm-Bawerk's theory are based upon how time also affects the value of products. The notion that a product present and ready today is worth more than a product that will not be present until a week from now, and in turn the product ready a week from now is worth more than one ready a year from now, is explained. The time preference of goods, and its effects upon price, production, how consumers perceive value, and (crucially) the mechanism of interest is central to this work. Much of this text is also occupied by debunking theories of capital that came before it, identifying their contradictions which ultimately befuddle and confound those who subscribe to them. Boehm-Bawerk is careful to construct a theory of capital and interest that maintains its inner logic across the entire sphere of the economy. Although his theories use the same terms as his forebears, the author ultimately delivers a thesis which differs at the most basic levels of price and value. An important figure in the field of Austrian economics, Boehm-Bawerk is recognized for his contributions to this school of thought. He was vociferous and thorough in criticizing Marxist thought, and these critiques count among his most recognized and celebrated accomplishments. For its part, The Positive Theory of Capital soundly shows how the tenets of economics relate and affect one another. It inspired generations of economists who followed, both within and outside the Austrian school of economics.
