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Malaita Travel on Buying the tape today and renting its services is an intertemporal exchange. Second, capitalist undertakings, in general, involve the transformation of things such as raw materials and labor into consumer goods. Since production takes time, this transformation can be thought of as another intertemporal exchange, and the capitalist’s profit as interest. Unfortunately, Böhm-Bawerk is better known for a widely dismissed idea about capital than for his seminal contribution to interest theory. One of the reasons for positive time preference is the technical superiority of present over future goods. This results from the benefits of roundaboutness in production. Spending time making a boat or a net is a roundabout way of catching a fish. Malaita Travel 2016.

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