Someone just told me that Human Action ignores economic rents "and therefore contain major errors of thought". In what sense is this true. Does it matter? Why? What's the deal here?
Thanks in advance.
He probably means that after a person works hard and scrimps and saves to buy, say, a pizza oven, that the money he makes selling pizzas, especially if he hires somebody to knead the dough and put it in the oven, is undeserved. All the profits from the pizza shop should go to the guy who kneads the dough. The owner of the oven is just getting [sneer of contempt] rent. And if he rents his oven to someone else who wants to open a pizza shop, that's even worse.
It's called the labor theory of value. Mises does not ignore it, but on the other hand is very succint in refuting it.
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It's easy to refute an argument if you first misrepresent it. William Keizer