Capital and Interest is von Boehm-Bawerk's magnum opus, one of the greatest achievements in the history of economic thought.In fact, it is a Magna Carta of the capitalistic production process. In an economic order based on production, income from capital investment provides the very basis of the system and a livelihood for a large middle-class, as well as capitalists and entrepreneurs. All observations about the nature and appraisals of the value of capitalism hinge upon the explanation of this capital income. Capital and Interest is divided into three parts: The second volume, Positive Theory of Capital, contains much more than the title seems to indicate. It presents a comprehensive theory of the entire production process. In particular, it elaborates on the principles that govern the allocation of incomes, that is, the amounts of interest, wage, and profit. von Boehm-Bawerk offers a persuasive solution to all questions of income and theories of distribution.

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