Production Theory

If allowed to function freely, capitalism is hard-wired to distribute resources to as many people as possible at affordable prices. You don't have to be rich to participate in the bounty.

The concept of "productive complements" shows us how capitalists have long sought to make as much use as they can of every part of the materials they use to make goods.

Private entrepreneurs have solved many environmental problems by finding ways to turn garbage into something people were willing to pay for.

Why are there many firms in the world, and not just one, big mega-corporation? The answer lies in the problem of calculating costs and prices.

The shorter work week is entirely a capitalist invention. As capital investment caused the marginal productivity of labor to increase over time, less labor was required to produce the same levels of output.

Per Bylund explains the many contributions of Jean-Baptiste Say, a precursor to the Austrian School of economics. 

There is no truly equal way to distribute goods. But capitalism offers a way for more people to benefit from the process of bidding for those goods and services.

Notwithstanding its endorsement by Mises, many modern Austrians reject the notion of consumer sovereignty as an inaccurate political metaphor.

Mises stressed the primacy of consumer preferences in the determination of precisely which kinds of goods will be produced with society's scarce resources. 

This paper looks at the differences between investment and cash building and if either one offers additional benefits.