
Capital and Interest
'Capital and Interest' Summary
Frédéric Bastiat was an early 19th-century French economist/statesman whose common-sense essays tried to battle the rise of socialist ideology after the French Revolution, where provisional governments were rivaling each other for power. Of central concern was who should control the money. How is wealth created? How should it be divided amongst the people? What services should the government provide? Same questions we are asking now. This essay addresses the popular fallacy of the day that capital should be available to all gratuitously, without the necessity of paying back loans, and looking upon any form of interest as usury. Bastiat argued that capital is created by savings, and savings are what makes borrowing possible so the common man can get ahead and prosper, and lending is only worth the risk if the lender profits by it, via interest. He demonstrated the law of supply and demand, that, in essence, interest decreases as the availability of capital increases. His basic premise is that without a leisure class (people who have money to spare over earning daily bread), there would be nothing to borrow, so that neither the common man nor society can prosper.Book Details
Language
EnglishOriginal Language
Published In
Genre/Category
Tags/Keywords
Authors

Frederic Bastiat
France
Claude-Frédéric Bastiat was a French economist, writer and a prominent member of the French Liberal School. A member of the French National Assembly, Bastiat...
Books by Frederic BastiatDownload eBooks
Listen/Download Audiobook
- Select Speed
Related books

Memoirs of Extraordinary Popular Delusions and the Madness of Crowds, Volume 2 by Charles Mackay
"Men, it has been well said, think in herds; it will be seen that they go mad in herds, while they only recover their senses slowly, and one by one."...

Bíblia (Almeida) 21: Ecclesiastes by Almeida Version
O Eclesiastes é um livro da Bíblia que explora a natureza da vida e a busca pelo significado. O autor, conhecido como o Pregador, reflete sobre a futi...

National Geographic Magazine Vol. 07 - 11. November 1896 by National Geographic Society
This November 1896 edition of National Geographic Magazine delves into the geopolitical complexities of South Africa, specifically the Witwatersrand g...

Fundamentals of Prosperity by Roger Babson
The book is a treatise on how to achieve material prosperity through thrift, imagination, integrity, vision, and faith. Babson sees these as the human...

Ultimate Foundation of Economic Science by Ludwig von Mises
This book, "Ultimate Foundation of Economic Science" by Ludwig von Mises, is a foundational work in Austrian economics. It presents Mises's theory of...

De Agricultura by Marcus Porcius Cato
De Agricultura, written by Marcus Porcius Cato in the 2nd century BC, is a treatise on Roman agriculture. It is the most extensive piece of early Lati...

Christian Oeconomie by William Perkins
This book provides guidance on how to establish and manage a household according to biblical principles. It covers topics such as the roles of husband...

Other People's Money by Louis D. Brandeis
Other People's Money And How the Bankers Use It is a collection of essays written by Louis Brandeis first published as a book in 1914, and reissued in...

British Barbarians by Grant Allen
British Barbarians is a thought-provoking and entertaining novel that explores the nature of society and the role of the individual within it. The sto...

The History of Standard Oil: Volume 2 by Ida Tarbell
The History of the Standard Oil Company is a 1904 book by journalist Ida Tarbell. It is an exposé about the Standard Oil Company, run at the time by o...
Reviews for Capital and Interest
No reviews posted or approved, yet...