The Importance of Capital

It is often argued that scientists and technical innovators are underpaid given their importance in advancing our civilisation. This is particularly so when compared to those evil investment bankers and stock brokers who ‘produce’ nothing in return for big bucks.

In his book Man, Economy and State, Rothbard argues that inventions are meaningless until capital is invested to put them in use. He claims "there is always an unused shelf of technological projects available and idle." Why idle? ". . . in order for the new invention to be used, more capital must be invested."

Commercialization is not a technically trivial exercise. It makes the crucial difference between a useful and useless invention and rightly so those who facilitate commercialization are rewarded.

"If you are for technological progress, and its wide availability, then you should be an enthusiastic supporter of capital accumulation and its rational investment. That is, you should be for the free market." Read more here....