Investment Suitable Time To Develop Technological Process

By Johnny C.H. Lok

On the capital accumulation difference aspect, an increase in capital per worker will generally increase output in the economic growth without technological process or economic growth with technological process both situations. On other words, the more equipment that is used by people at work, the more they are likely to produce. So, one without technological process country, it can still earn capital accumulation if it has more equipment that is used by people at work, although, it has without any high technological process at the moment. But to increase capital requires investment, and that investment requires resources, resources that could have been used for producing consumer goods. Thus, much investment means diverting resources away from producing finished goods into producing machines, buildings and other capital equipment. This is the opportunity cost of investment. So, it seems to explain that why some developed countries can not each the high technological process stage because they lack enough resources, they spend much resources to invest producing machines, buildings and other capital equipment in order to manufacture different kinds of finished goods to supply to consumers to buy. So, they must have enough resources to raise high technological development as the same time. It is the opportunity cost either to invest resources to other capital equipment or high technological invention because they have not enough resources to carry on investing the same things.If we take a simple circular flow of income model, with saving as the only withdrawal and investment as the only injection, then saving will be equal to investment (S=I). An increase in saving, therefore, will enable more investment and more output for the future. Thus, sacrifices today, in terms of more saving more less consumption, will mean more output and hence possibly more consumption for the future. So, it implies that when the country has many manufacturers feel many consumers will like to save more in bank and they will reduce consumption. So, they won't spend much investment on capital producing equipment or machine productivity aspect as well as they will reduce output. When they feel many consumers will not save more in bank, they will like to consume too much.

• Format: Paperback
• Language: English
• ISBN: 1675706395
• ISBN13: 9781675706398
• Release Date: January 1
• Publisher: Independently Published
• Length: 322 Pages
• Weight: 1.65 lbs.
• Dimensions: 0.7" x 8.5" x 11.0"