ABSTRACT
The chapter presents the task this book sets itself. Almost all theories of capital endorsed by economists, and certainly the prominent ones, do not define capital in the way actual business people in capitalist societies do. Even the Austrian school of economics, the most pro-capitalist and libertarian school of economic thought, usually defines capital in a way that has nothing to do with capitalism. Judging from their definitions and theories, economists appear to believe that capitalism has nothing to do with capital. Based on some earlier contributions by various economists, the book counters this trend and develops a theory of capital that is, at the same time, a theory of capitalism. The chapter also provides a roadmap for the rest of the book. Next to a positive theory of capital, the book comments on and criticises the implementation of value-orientation – particularly fair value accounting and shareholder value maximisation – in the economic calculations of business enterprises.
