The purchase of capital goods or services to produce consumer goods or other capital goods. It is an expenditure intended to increase production and thus contrasts with consumption. That is, it is the act of not consuming those resources in the present to meet current needs but to allocate them to meet future needs. That is why investment is related to savings, which is the postponement of present consumption for the sake of the future. Therefore, every investment is made with the aspiration of profits that do not exist in the present. Investment is the key to economic growth and progress. Much progress has been made thanks to investment because someone in the past decided not to consume what they had and dedicate it to creating capital that could provide greater returns later. Investment can be in physical objects, such as machinery or buildings for living or producing, or in raw materials or goods that serve to produce other goods. Investment can also be financial, where consumption is sacrificed to buy shares or bonds. The more individuals invest, the richer they and their country will be. However, investment can also be done poorly, leading to economic crises.
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