Austrian Capital Theory
About this episode
Paul Cwik discusses the nature of capital in Austrian economics and its implications for understanding economic growth.
Is capital a uniform "pool" that can be reshaped into anything, or a delicate, time-structured web of complementary pieces? Paul Cwik traces the question from Menger and Böhm-Bawerk through the great debates with J.B. Clark and Frank Knight, and shows why the answer matters enormously. Because capital is heterogeneous, a fall in consumption need not mean recession—it can mean the economy is lengthening its structure of production to build future growth, a shift the mainstream, assuming capital is homogeneous, simply cannot see. Recorded at the Mises Institute in Auburn, Alabama, on July 21, 2026. Mises University is the world's leading instructional program in the Austrian School of economics, and is the essential training ground for economists who are looking beyond the mainstream.
People in this episode
Guest: Paul Cwik
Topics covered
- capital theory
- Austrian economics
- production structure
- economic growth
- heterogeneous capital
Keywords
- capital
- Austrian School
- Mises Institute
- economic theory
- production
- recession
- heterogeneity
Mentioned in this episode
Organizations: Mises Institute
Books & works: Austrian Capital Theory
Places: Auburn, Alabama
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