
Quoting mises.org:
Rothbard’s Figure 41 (p. 369) is perhaps the most economical depiction of the Austrian approach to capital and interest. Like the mainstream “circular flow diagram,” Figure 41 shows how, in the ERE, total expenditures (100 oz. of gold) equal total income (17 oz. to capitalists and 83 oz. to land and labor owners). However, Figure 41 goes far beyond the typical macro diagram by depicting the structure of production, i.e. the fact that goods take time to mature from original factors into final consumer goods.
I just began reading this chapter. Another Rothbard masterpiece.

1 comment:
I intend to post a follow-up regarding government ownership of natural resources.
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