Austrian Capital Theory | Paul Cwik

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. 0:00 Introduction: What Is Capital Theory? 1:51 Menger and Böhm-Bawerk: Capital Is Heterogeneous 3:52 Clark's Homogeneous Pool: Capital Without Time 6:28 Clark's Legacy: Knight, Friedman, and Modern Macro 8:21 Böhm-Bawerk Responds: Analogy vs. Science 9:47 Capital: Substitutable or Complementary? 13:24 Building Capital from Scratch: The Naked and Afraid Example 17:27 The Structure of Production: From Circles to the Hayekian Triangle 22:51 Roundaboutness and the Magic Formula for Economic Growth 27:39 Keynesians Panic; Austrians Know Better 29:00 Lachmann and the Financial Approach to Capital 33:40 Measuring Duration: The Average Period Problem 40:21 Does Roundaboutness Change the Interest Rate? Find free books, daily articles, podcasts, lecture series, and everything about the Austrian School of Economics at https://Mises.org​​. X ► https://x.com/mises/ Facebook ►   / mises.institute   Instagram ►   / misesinstitute   SoundCloud ►   / misesmedia   Apple Podcasts ► https://podcasts.apple.com/us/artist/... Rumble ► https://rumble.com/c/c-2212754 Odysee ► https://odysee.com/@mises/ Podcasts ► https://mises.org/podcasts