Capital and Interest Theory

This is a rejoinder to “The Marginal Efficiency of Capital: Comment” by Lucas M. Engelhardt. Engelhardt incorrectly ranks investment projects by Present Value instead of Net Present Value.

Not only are stock markets near all time highs, the amount of margin debt is also at all time highs. Margin debt is money borrowed to leverage the purchasing power of portfolios.

"In other words, you cannot accurately forecast a recession or financial panic by looking at either the announcement or the completion of the world’s tallest building"

 

So The Economist apparently does not think too "highly" of my skyscraper theory

The Fed — and many economists everywhere — believe that giving more people jobs will drive more economic growth. But more employment is useless for economic growth if employed persons are not contributing to real wealth and capital accumulation.

Interviewed by host Dawn J.

Research is not just the way we add to the body of knowledge left by previous generations, but is also an effective means of engaging and challenging the ideas of mainstream economics.

Knowing that money or gold cannot be used to provide a fixed measure of value, David Ricardo turned to the value of labor instead. But his labor theory of value has led to many errors including Marxism, land taxes, and much more.

Interviewed by Emil Franzi and Bruce Ash on AM 1030 KVOI in Tuscon, Mark Thornton offers an Austrian perspective on several issues such as Obamacar

Thorsten Polleit wrote the

For the last decade (or more), Canadians have been ebullient about their home-grown housing boom.