Roundaboutness

Rounaboutness, or roundabout methods of production is the term used to describe the process whereby capital goods are produced first and then, with the help of the capital goods, the desired consumer goods are produced.

The term was devised by the Austrian School economist, Eugen von Boehm-Bawerk who maintained that it was consumer demand, and not necesarily the supply of savings that would determine the capital investment in any industry.