13-5d2 Interest is not the reward of capital goods per se—it is derived from the generalized investment of time

Put differently, the capitalists are constrained by the aggregated time-preference schedules, which tend to be uniform—so the concreteness of capital goods doesn’t matter as it relates to the interest income, at least in the evenly rotating economy.revisit

“The interest income is not derived from the concrete, heterogeneous capital goods, but from the generalized investment of time.”

Next:

• 13-5d3 Capital per se is not permanent

Related:

• 3-1a4a1 The whole must be evoked in explaining the parts
• 13-4d6 The economist must take account of all the interrelations in the economy and recognize that money costs are determined by final prices reflecting consumer demands and valuations
• On the evenly rotating economyERE
  • 13-1a3a5 The concept of an equilibrium price presupposes a world without further subjective re-evaluations or change
  • 13-5b2b Because of money, the rate of return will tend to be uniform throughout the length and breadth of the production structure
• On capitalists
  • 13-5b The capitalists are the only ones who spend money on labor, land, and capital goods
  • 13-5b1 Without the capitalists, the income earned by the owners of land and labor fluctuates with consumer demand and is received at a much later date
  • 13-5e The capitalists are constrained by the aggregated time-preference schedules just as sellers of any other present goods are constrained by the aggregated demand schedules of the consumers