Economic losses cause exit, as businesses withdraw from this activity and resources are released to earn their opportunity cost elsewhere. Slide 18 Interest is an intertemporal price , i.e. it depends on the price of a unit of wealth today in terms of a unit of wealth in the future. Determinants of interest 1. The entrepreneur as residual claimant, i.e. as the person who, in exchange for control over a set of resources, gets what is left over after all costs have been paid, whether what s left over is large, small or negative. The entrepreneur as social reorganizer, i.e. as the person who stakes a claim to a set of resources, thus changing how society uses them.
Millions die off, and the cycle begins all over again.
Eventually, the masses will overthrow the capitalist order and replace it with the workers' state. First proposed by Paul Erlich, who suggested that human population, especially in poor nations, was growing out of control. We destroy the climate and the ozone layer and are running out of cropland and parkland and land of all sorts, and are thus sowing the seeds of humanity's doom. As a result of our population size, consumption patterns, and technology choices, we have surpassed the planet's carrying capacity. This is plainly evident by the extent to which we are depleting natural capital.