Interest is a cost of production that capitalists must cover to break even.
Evidence
Capitalists must borrow (occasionally from themselves, i.e. from their accumulated profits) to purchase labour, land and capital goods before production begins. To break even, their revenues must cover – in addition to all their other costs – the interest financiers charge them (or which they would have earned from saving that money had they not entered into production). — Yanis Varoufakis, Technofeudalism, 799
Categorization
- DEFINE: Defines the role of interest as an unavoidable cost frontier that capitalist production must exceed to yield profit.
- corroborated: 2 independent passages support this claim — Yanis Varoufakis, Technofeudalism: What Killed Capitalism, 799
- XREF: connects to: Finance manages rather than creates value under capitalism. — Max Haiven, Cultures of Financialization, 98
Broader Connections
- Finance manages rather than creates value under capitalism.
#contradicts(0.85) — Max Haiven, Cultures of Financialization, 98