13-5a1 Civilization advances by virtue of additional capital

Relate with Eric Voskuil’s Time Preference Fallacyrevisit

“Civilization advances by virtue of additional capital, which lengthens production processes. The economy would revert to barbarism, with the employment of only the shortest and most primitive production processes.” (pp. 399-400)

Next:

• 13-5a2 Higher stage production processes will benefit both nominally and in real terms, after the effect of saving plays out, in the evenly rotating economy going through progressing phase

Related:

• 13-5f The interest rate is determined by the time-preference schedules, rather than vice versa
• 13-10 The law of the diminishing marginal utility of money applies only to the valuations of each individual person
• On saving
  • 13-5b1a Saving is not necessarily a monetary phenomenon—the restriction of present consumption constitutes saving
  • 13-5b1c Saving is fundamentally about foregoing things that could’ve been done—it’s about choosing one specific timeline over others
  • 13-5b2.1 Saving (in money) can literally save you
  • 13-5b3d The total savings going into investment in production is the total supply of savings minus consumers’ loan demands for present goods