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Criticism

The theory has been opposed by Eugen Böhm von Bawerk, among others. In History and Critique of Interest Theories (1884), he argues that capitalists do not exploit their workers, as they actually help employees by providing them with an income well in advance of the revenue from the goods they produced, stating: "Labor cannot increase its share at the expense of capital". In particular, he argues that the theory of exploitation ignores the dimension of time in production. From this criticism, it follows that, according to Böhm-Bawerk, the whole value of a product is not produced by the worker, but that labour can only be paid at the present value of any foreseeable output.