Bob revisits capital and interest theory to show why the textbook result “interest = MPK” only holds in a one-good world, and why in actual markets the interest rate emerges from time, prices, and capital valuation—not raw productivity.
You May Also Like
Editor's Pick
Trump’s latest Hollywood “hit” isn’t the kind you stream. Threatening to slap a 100% tariff on films produced in foreign countries, the president’s announcement...
Editor's Pick
We’ve been cautious about the uptrend phase off the April low for a number of reasons, including the lack of breadth support. While short-term...
Politics
The economic doctrine of “externalities” has become an excuse for governments to intervene economically in heavy-handed ways, all in the name of “saving” the...
Politics
In this week’s Friday Philosophy, Dr. David Gordon reviews The Woke Revolution: Up From Slavery and Back Again by H.V. Traywick, Jr., and finds...