Buy Quote by John Buchanan Robinson
“Capital, however capital may be defined, would practically cease to exist as an income producing fund, for the simple reason that if money, wherewith to buy capital, could be obtained for one-half of one per cent, capital itself could command no higher price.”
About This Quote
Source Book: The Economic Theory of Capital, John Buchanan Robinson, 1910
Capital loses value if borrowing costs are extremely low, because the return on capital cannot exceed the cost of money used to acquire it.
In simple terms: Cheap money makes capital worthless.
Key Takeaway
Avoid relying on ultra‑low interest rates for investment returns.
Themes
economics
finance
investment
interest rates
Mood
cautious
analytical
Type
economic
financial
theoretical
When to use this quote
- business planning
- real estate investment
- stock market speculation
- personal finance
- government policy
Key Concepts
Capital theory
interest rate parity
investment return
Questions to Reflect On
- How do investors protect returns when rates are low?
- What alternatives exist beyond borrowing cheap money?
A Different Perspective
If interest rates are near zero, other factors like risk and demand still affect capital value.
