Capital and Interest

Frédéric Bastiat's early 19th-century essays tackle the critical questions of wealth creation and distribution in the aftermath of the French Revolution. In an era where socialist ideas gained traction, he argues against the belief that capital should be freely available without repayment, asserting that savings are essential for lending and economic progress. Bastiat elucidates the relationship between supply, demand, and interest rates, emphasizing that societal prosperity relies on a leisure class capable of lending resources. His insights remain relevant as they address fundamental economic dilemmas that persist today.