What Came First: The Chicken or the Egg, Capital or Investment?

This is a question that has puzzled philosophers for centuries. It is still debated whether the chicken came first, and it’s evolution from its ancestors, or the egg which resulted from the incubation of the ancestor’s egg. The same argument can be applied to capital and investment. Which came first? Is it capital or investment? In this blog post, we will delve into this question and explore both sides.


Capital is anything that promotes economic activity. It can be cash, machinery, real estate, and many others. Investment, on the other hand, refers to the use of capital to create more capital. For instance, if you have $100,000 to invest, you might consider investing it in stocks, bonds, or starting a business. The goal is to turn the initial investment into more money over time.


Now, the question is, which came first? Some economists suggest that capital comes first because without it, there can be no investment. In other words, in order to create more capital, you need capital in the first place. However, others believe that investment comes first because without investment, there would be no need for capital. If nobody is investing, then there is no need to create capital.


One of the most prominent figures in economics, John Maynard Keynes, once said, “Capitalism is the astounding belief that the most wickedest of men will do the most wickedest of things for the greatest good of everyone.” He believed that investment comes first because it prompts people to put their money into new ideas and innovations.


On the other hand, others believe that capital comes first. Without capital, investment opportunities would not exist. In addition, capital investment is critical because it creates economic growth and generates employment opportunities. For instance, if a company invests in a new factory, that factory has the potential to produce products that can be sold at a profit. This can increase economic growth, generate returns for investors, and provide jobs for workers.


The chicken or the egg, capital or investment debate could go on for eternity. In our view, investment comes first because it is the driving force behind economic growth and progress. On the other hand, capital is needed to finance these investments. Without one or the other, there can be no economic prosperity. Both investment and capital are critical for the growth of economies and for individuals to create wealth. Ultimately, it’s not about what came first, but how the two work together to create a more prosperous society. 

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