The Socialist Theory of Exploitation Is Fallacious, and When Considered from the Point of View of Theoretical Soundness, It Occupies One of the Lowest Places Among All Theories of Interest

I have devoted an exceptionally and disproportionately large amount of space to the discussion of the exploitation theory. I have done so advisedly. Certainly none of the other doctrines has approached it in the influence it exercised on the thoughts and the emotions of whole generations. And just our era has seen it at its apogee. And unless I am mistaken, its descent has already begun. But it is to be expected that there will still be attempts at stubborn defense or at revivification by metamorphosis. And so I thought I should be serving the good cause if I avoided restricting myself to a purely retrospective critique of the  developmental stages of the doctrine, now definitely terminated. I thought it would be well to look forward, and even now cast some critical illumination on the intellectual theatre of operations to which, according to definitely discernible signs, its adherents are intending to transfer the renewed controversy.

So far as that old socialist theory of exploitation is concerned, which has been presented here in the person of its two most distinguished protagonists, Rodbertus and Marx, I cannot render a verdict any less severe than the one I handed down in the first edition of this book. It is not only fallacious but, considered from the point of view of theoretical soundness, it occupies one of the lowest places among all theories of interest. Grievous as may be the errors in logic made by the representatives of other theories, I hardly think that anywhere else are the worst errors concentrated in such abundance—frivolous, premature assumptions, specious dialecticism, inner contradictions and blindness to the facts of reality. The socialists are excellent critics, they are exceptionally weak theorists.

—Eugen von Böhm-Bawerk, The Exploitation Theory of Socialism-Communism: The Idea that All Unearned Income (Rent, Interest and Profit) Involves Economic Injustice; An Extract, 3rd ed. (South Holland, IL: Libertarian Press, 1975), xxx.