Tom -
..."Theory of Money and Credit" and "Human Action" by Ludwig von Mises
To be able to read HA above, most people would need to also get the following book :
Mises Made Easier, A Glossary for Ludwig von Mises' HUMAN ACTION, prepared by Percy L Greaves, JR. with a foreword by Mrs. Ludwig von Mises
As a public service -
Malinvestment. An investment in wrong lines which leads to capital losses. Malinvestment results from the inability of investors to foresee correctly, at the time of investment, either (1) the future pattern of consumer demand, or (2) the future availability of more efficient means for satisfying a correctly foreseen consumer demand.
Example of (1): An investment of available savings in a manner that cannot produce as much consumer satisfaction as the same funds could produce if invested differently.
Example of (2): An investment which, before the end of its expected useful life, becomes obsolete due to the unforeseen development of more efficient means for satisfying the same consumer demand.
Malinvestment is always the result of the inability of human beings to foresee future conditions corectly. However, such human errors and the resulting malinvestments are most frequently compounded by the illusions created by undetected inflation or credit expansion. From the viewpoint of attaining maximum potential consumer satisfaction, every political intervention, other than that needed for the preservation of the market society, must lead to malinvestment.
Regards, Don |
