Positive Capital Theory

Author: Eugen von Böhm-Bawerk
Pages: 380

"Capital" has a bad press, it is often considered the primary cause of our socio-economic woes. But do we really know what capital is? And its true economic role? To enlighten us, Eugen Böhm-Bawerk, professor at the University of Vienna, has left us his "Positive Theory of Capital". Systematic and enthusiastic, he goes over all the misunderstandings linked to this notion and in doing so sets out several fundamentals of the theory of the Austrian school. But the interest of this book goes far beyond the theory alone. We first discover a very cultured man, for whom the industrial practices of the time hold few secrets: it is like a guided tour that the author unfolds for us. Then it is the content of the debate between the proponents of the socialist theses facing their bitter opponent that gives food for thought; a fierce and committed debate, but with a courtesy that is too often forgotten. Finally, and perhaps most importantly, we see the methodology and analytical approach that are now the hallmark of the Austrian school applied. The author does not drown in the thousand and one forms of goods in order to find capital. He observes the dynamics of the entrepreneur, then he draws from it a concept, more abstract and yet very objective and real. Thus the observed notions are assembled into a science of economic and social life. The "Positive Theory of Capital" is aptly named, it is very positive. It is not an austere book on economics, but a history. The history of modern economic life told by a brilliant mind curious about Man.