13-5b3c The demand of landowners and laborers for present goods tend to be inelastic with respect to interest rates

This is why consumers’ loan demand curve is almost parallel to the total demand curve.

“The productive demand (i.e., that of landowners and laborers) for present goods tends to be inelastic with respect to interest rates.” (p. 419)

Next:

• 13-5b3d The total savings going into investment in production is the total supply of savings minus consumers’ loan demands for present goods

Related:

• What happens if everyone is performing the role of capitalist? Is the statement here still valid then?
  • 13-5c1 All consumers can be capitalists if their time-preference schedules so dictate
• Time preference governs the structure as it relates to the emergence of interest—the consumer loan market (i.e., debt) just emerges from the said time preferences:
  • 13-5b2e There is no substantial difference between debt and equity, at least in the evenly rotating economy
  • 13-5g Do not confuse the effect for the cause—to explain the causality at play, you must explain what must have happened at first and what would have happened in the absence of change
• Time preference dictates interest, and not vice versa—the rate of interest at any point in time already reflects the underlying structure of time preference present in the economy, at least according to Rothbard:revisit
  • 13-5f The interest rate is determined by the time-preference schedules, rather than vice versa