INVESTMENT AND SOCIETAL PRODUCTIVE CAPACITY 3
The elements of the production process include objects, agents, methods, space, and time
of production. The objects are the materials in the production system. They include finished
products, semi-finished products, and raw materials. Agents of production are the elements that
act on the materials. They encompass human employees and the assistive equipment used on
materials. Methods of production are the means, procedures, and work instructions by which
production takes place. Space and time describe the location and timing of production. Both
fixed income investment and variable income investment target one or more of the elements of
production (Clark & Monk, 2017). For example, spending on the education of a doctor and an
engineer signifies investment on an agent of production. So does the purchase of land to build a
water processing plant signify investment on a production location. Basically, investors get to
own all production processes.
The consequences of control over societal productive capacity by investors are realized in
the two business processes of purchase and sale. In a free investment economy, the capitalistic
elements of profit motive, competition, and minimal government intervention guide business
activities. Such trends lead to monopoly as only a few people may afford the capital to institute
industries and other elements of production. It is at the discretion of such investors to define the
terms of engagement in purchases and sales of the objects of production (Andrews, 2017). They
may set very low wages for employees because they are sure that no other jobs are available.
They may also produce goods of inferior quality, lower payments for raw materials, increase
prices of products, and engage in other practices of their choices because they are in control.
In conclusion, Veblen’s claim that investment gives owners control over the productive
capacity of a society is true. Investment defines the act of partaking in business for future gains.
On the other hand, the production process manufactures goods and avails services for utility. The