Investment – (1) the act of investing; laying out money or capital in an enterprise with the expectation of profit; (2) the commitment of something other than money (time, energy, or effort) to a project with the expectation of some worthwhile result (source: Google Define)
The term investment is used an awful lot in capitalist and capitalist-like economies. In fact, I would say the act of investing is one of the single-most defining characteristics of the capitalist system, the modern depth of which is not properly conveyed in the above definitions. Nowadays an investment is not simply a handing over of money; it is a show of faith, of belief in an idea, of trust in payback with greater returns. Failure to return on investment has social consequences in capitalist-based societies: it can demonstrate an untrustworthy character, a failed idea, or maybe simply a right idea at the wrong time. But the inherent risk of the investment is (or at least should be) understood by both parties, as no investment is a sure-thing, ever. The trick with investing is that oftentimes the bigger the risk, the bigger the reward. Continue reading
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