Tools, machinery and other man-made elements used to produce goods and services


Capital Goods and Capital, by Ludwig von Mises, Human Action: A Treatise on Economics, 1949
Chapter 15, Section 2; explains what are capital goods, differentiates them from "capital", defines other terms such as saving, income and capital consumption, and discusses spurious concepts such as real capital and social capital
"At the outset of every step forward on the road to a more plentiful existence is saving--the provisionment of products that makes it possible to prolong the average period of time elapsing between the beginning of the production process and its turning out of a product ready for use and consumption. The products accumulated for this purpose are either intermediary stages in the technological process, i.e. tools and half-finished products, or goods ready for consumption that make it possible for man to substitute, without suffering want during the waiting period, a more time-absorbing process for another absorbing a shorter time. These goods are called capital goods."
The Economic Role of Saving and Capital Goods, by Ludwig von Mises, The Freeman, Aug 1963
Explains there is a third factor of production aside from nature's resouces and human labor, and also that entrepreneurial judgement is necessary to attain the desired end of production
"Capital goods come into existence by saving. A part of the goods produced is withheld from immediate consumption and em­ployed for processes the fruits of which will only mature at a later date. ... Civilized man produces tools and intermediary products in the pursuit of long-range designs that finally bring forth results which direct, less time-consuming methods could never have attained, or could have attained only with an incomparably higher expenditure of labor and material factors."
Related Topics: Entrepreneurship, Technology, Wages
Inequality of Wealth and Incomes, by Ludwig von Mises, The Freeman, May 1955
Describes how attempts to equalize incomes and wealth lead to lowered standard of living for the masses and eventually to socialism
"The Ford enterprises would not exist if Henry Ford's profits had been taxed away as soon as they came into being. The business structure of 1895 would have been preserved. The accumulation of new capital would have ceased or at least slowed down considerably. The expansion of production would lag behind the increase of population."
Related Topics: Socialism, Free Market, Taxation
Minimum Wage Rates, by Ludwig von Mises, Human Action: A Treatise on Economics, 1949
Chapter 30, "Interference With the Structure of Prices", Section 3; discusses the setting of minimun wages both by legislation and by collecitve bargaining, pointing out some of the resulting problems
"Tools and machinery are primarily not labor-saving devices, but means to increase output per unit of input. They appear as labor-saving devices if looked upon exclusively from the point of view of the individual branch of business concerned. Seen from the point of view of the consumers and the whole of society, they appear as instruments that raise the productivity of human effort. They increase supply and make it possible to consume more material goods and to enjoy more leisure."


Capital and Interest, by Eugen von Böhm-Bawerk, 1884
3 volumes: History and Critique of Interest Theories, Positive Theory of Capital, and Further Essays on Capital Interest. Electronic text based on 1890 translation, available at The Library of Economics and Liberty.