Investment

This chapter focuses on investment decisions made by businesses, and how these are affected by market conditions such as the interest rate. Investment is the key to building the stock of capital in the economy. There are several kinds of capital goods which are all complementary, and therefore, several kinds of investments. The six types of capital are business, infrastructure, human, intellectual, natural, and social capital, and each of these come with different roles for the public and private sector. Throughout this discussion, real-world examples are used as evidence. Professor Sachs explains the importance of investing in these six types of capital; building capital is what investment is all about. In order to have the right kinds of investments to build for progress and development that is sustainable and fair into the future, we must have diversified investment in a mixed economy.

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