than the payment for the three factors of production, and that
Interest in particular is nothing else than the compensation
which capital receives for its productive services when the
product is divided out among society. Propounded by various
interest theories in various forms this idea has found its most
concise and, at the same time, its most naive expression, in
the well-known " Productivity theories "—those theories which
explain interest directly as the natural fruit of a productive
power peculiar to and resident in capital.1
In beginning the study of the theory of Capital, it cannot
be too emphatically stated that this idea, simple and natural
as it may appear, contains a prejudgment calculated to preclude
unbiassed consideration of the problems of capital.
than the payment for the three factors of production, and thatInterest in particular is nothing else than the compensationwhich capital receives for its productive services when theproduct is divided out among society. Propounded by variousinterest theories in various forms this idea has found its mostconcise and, at the same time, its most naive expression, inthe well-known " Productivity theories "—those theories whichexplain interest directly as the natural fruit of a productivepower peculiar to and resident in capital.1In beginning the study of the theory of Capital, it cannotbe too emphatically stated that this idea, simple and naturalas it may appear, contains a prejudgment calculated to precludeunbiassed consideration of the problems of capital.
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