These prices exhaust the whole difference between the productivity of a process aided by a definite factor's cooperation and that of a process lacking this cooperation. The difference between the sum of the prices of the complementary factors of production and the products which emerges even in the absence of changes in the market data concerned, is an outcome of the higher valuation of present goods as compared with future goods. As production goes on, the factors of production are transformed or ripen into present goods of a higher value. This increment is the source of specific proceeds flowing into the hands of the owners of the factors of production, of originary interest. It is not permissible to refer, in the explanation of interest, to the services rendered by the factors of production in the turning out of products.
Interest is a homogeneous phenomenon.
There are no different sources of interest. Interest on durable goods and interest on consumption-credit are like other kinds of interest an outgrowth of the higher valuation of present goods as against future goods. Database Programming, Site Design and Hosting IWDC, Inc.