Growth, Interest and Wage Inequality - To the austrian economists here
Hi all,
one night I came up with the following idea: Interest is strongly determined by economic growth. So Interest is bound to returns of capital investments but also returns of human capital investments. If there was no growth and no interest, the wage spread between trained and untrained workers would partly vanish, since education costs (credit costs) are (near) zero and returns of human capital tend to be zero. So growth actually is causal for part of wage inequality (in a not harmful way).
Of course I like to debate about this topic if you highly disagree
but primarily I would like to ask this (uniquely well read in austrian economics) community, whether and where a similar line of thought can be found in the vast literature of austrian economics because I don't want to claim this my own briliant idea, if it is know for hundred years
any hint appreciated!
one night I came up with the following idea: Interest is strongly determined by economic growth. So Interest is bound to returns of capital investments but also returns of human capital investments. If there was no growth and no interest, the wage spread between trained and untrained workers would partly vanish, since education costs (credit costs) are (near) zero and returns of human capital tend to be zero. So growth actually is causal for part of wage inequality (in a not harmful way).
Of course I like to debate about this topic if you highly disagree
but primarily I would like to ask this (uniquely well read in austrian economics) community, whether and where a similar line of thought can be found in the vast literature of austrian economics because I don't want to claim this my own briliant idea, if it is know for hundred years any hint appreciated!