Following this reference, the two distinct meanings of the ambiguous word “capital” are compared, which shows that money that can never be used in the act of production cannot be capital if this term is used in its concrete sense; And since capital can only make a profit if it is used productively, the fact that interest is paid on monetary loans when what is borrowed cannot be used productively must be attributed to an independent cause. The usual argument that money can buy real capital is rejected because money and capital would not be interchangeable if their economic properties were not homogeneous. This forces the search for an inherent good in the money, which may explain the willingness of borrowers to pay interest on money loans. As a remedy, the law authorized justices of the peace and overseers of the poor to arrest vagrants and rent them “for a period not exceeding three months” and “for the best wages that can be obtained,” all of which were to be used “for the use of a tramp or his family.” However, if such a busy person had to run away “without sufficient reason,” then the law allowed severe punishments. The vagrants were to be returned to their employers, for whom they would work for free, stay an extra month and wear bullets and chains. If no employer accepted them, they would be forced to work on public projects, even for free and always with balls and chains. Without proper public projects, vagrants would be imprisoned and fed only bread and water. The investigation into the economic cause of profit pouring into productively used wealth can now be continued. Such profit can occur only if the value created by the combination of capital and labor exceeds the cost of labor; That is, when the value produced exceeds the cost of production, including the value of the employer`s labor. In fact, the method of these authors in the treatment of definitions and sentences contrasts sharply with that used in the exact sciences. The use of ambiguous terms has led to unjustified and incorrect applications of otherwise correct teachings. Well-established theses, sometimes admitted and ignored unceremoniously at other times, are often contradictory statements that affect the reliability of the authors` conclusions. But if they have failed to some extent in dispelling the confusion of popular opinion, there is no reason why social phenomena should be more difficult to analyze than those of a physical or chemical nature.
It should therefore be possible to find, by logical reasoning, the fundamental cause of involuntary idleness or the factor which destroys the natural equation between supply and demand for commodities. And this can only be found in the conditions that govern the distribution of wealth and determine its division into rent, interest and wages. Search the dictionary of legal abbreviations and acronyms for acronyms and/or abbreviations that contain idle. Nglish: Translation of idleness for Spanish speakers 5. Emptiness; Madness; Infatuation; like the idleness of the brain. [Little used.] The first two terms of formula (3) are invariably positive, while the last two are sometimes positive, sometimes negative, depending on how updrafts or downdrafts predominate. Over a long period of time, they will be insignificant compared to the first two and perhaps neglected, reducing formula (3) to: they can produce what they now call idleness, and many problems and suffering. However we look at this doctrine of abstinence, when brought to its logical conclusion, it does not show how, under free competition in a community capable of producing more than enough to satisfy immediate needs, the difference between the present and future valuation of wealth – which is supposed to determine the rate of interest – can, on average, exceed the rate of risk and deterioration. And it is only to the extent that these two elements are more or less proportional to time that the “element of time” can legitimately enter the discussion indirectly. The same power of money easily explains the absence of the equation that should, of course, exist between the supply and demand of commodities.
Since the medium of exchange is available as a means of blackmail, it is desirable not only to receive goods in exchange, but also to force tribute. Since money is more desirable than equivalent commodities for this reason, the demand for money will necessarily exceed supply, and conversely, the supply of commodities offered for money must exceed demand. The resulting accumulation of unsold products is often confused with the cause of involuntary inaction, when in fact it is only a symptom of commercial stagnation. The amount of work that can be done in the modern work-sharing system is limited, depending on the amount of products that can be exchanged through the facilities available for exchange, and only a lack of such facilities can explain a lack of labor in a country as blessed by nature as this one. The same fear of a lack of jobs that led silk weavers to destroy the jacquard loom is now prompting lawmakers to “protect” workers by taxing imports, regulating immigration, enacting factory laws, and enacting other similar ineffective regulations. It cannot be denied that, as long as the tribute of debtors exceeds the risk premium, an increase in debt by what is called an unfavourable balance of trade will affect the prosperity of a people; Nor can it be said that the immigration of producers, by absorbing part of the available medium of exchange and increasing its relative severity, can only exacerbate the stagnation of trade; However, since these conditions are the result of a barrier to trade, additional restrictions cannot provide relief. However, this is not the only important conclusion to which this analysis leads. The logical results of the conditions presented are so completely consistent with all the phenomena common to commercial depressions that no more complete verification of the theory can be desired. As producers` debt grows faster and faster, they cannot continue to borrow indefinitely.
The money will accumulate in the hands of the financial class instead of circulating in trading channels. The inability of producers to meet their obligations becomes commonplace, investments become dangerous and part of the interest must be used to cover occasional losses of creditors, while the rest alone is a real source of income. Interest is separated into two parts, the risk premium or insurance to compensate for the lack of return on investment on loans, and the interest itself.