TERNATIVES SEEN AS BASIC ECONOMIC FACTS 2) 
until we get them? We speed up the machines that we now have 
nd work over-time. 
In generalized form, then, my proposition is: In any given 
state of population and the arts, the standard of living remainin 
onstant or rising, we normally increase stock (surplus goods) 
nd capitalize it, by speeding up and working over-time. 
f the proposition holds, a vitally important further proposi 
ion follows from it. There is a limit beyond which the pro 
ongation of human labor without rest, a point beyond which 
increasing intensity of effort, a point beyond which speeding up 
achinery, are rewarded by diminishing return. This mean 
increasing unit cost of product. Accordingly, the rate of accumu- 
ation of stock to capitalize and the rate of capitalization can 
ormally be increased only at an increasing unit cost. 
he propositions now arrived at are linked with a fifth basic 
conomic fact, namely: Pay interest or lose your chance. This 
is the “now or never” alternative. 
In the discussion that arose over Béhm-Bawerk’s Positive 
heory of Capital the distinction was made clear between (a) a 
incremental product of goods and (b) loan interest or true 
interest. The one consists of concrete goods in excess of the 
oods used up as capital goods in producing them. The product 
ay or may not have a value greater than the value which the 
concrete capital used up had. That is to say, the increment of 
rroduct may or may not be an increment of value. Loan interes 
r true interest is a sum of money or a credit, paid for the 
emporary possession of a sum of pure capital (money) borrowed, 
or of credit extended. In terms of value the relation between 
roducer’s increment and loan or true interest is a fluctuating 
one, but always there is a relation between the unconsumed 
‘stock” of concrete goods and loan interest. By all parties to 
he long continued controversy over the nature and cause of true 
interest it has been assumed that pure interest is a difference 
etween a present and a future value of the same or equivalen 
oncrete goods. However it may be disguised by the mediation 
f money or of credit, pure interest is a price paid for the imme- 
dist delivery of existing goods to be returned, replaced or pai 
or in the future. This price presumably is quantitatively deter- 
mined by (1) the demand for immediate delivery, and (2) the 
upply of immediately deliverable goods. The second condition