ABSTRACT
This chapter examines the primary generator of investment cycles in the socialist economy. Every form of social production has its own characteristic patterns of economic movement, which are simultaneous, intertwining, and influence each other. Economic development is a continuous process which logically implies the necessity of permanent changes. Shifts in the volume and structure of material production follow an order of succession determined by economic laws and to a certain extent also by technological momenta. As a complex social phenomenon technical progress has its economic, social, psychological, and other aspects. The inevitable shifts in production resulting from investments in new technique, which are an inherent feature of investment cycles, presuppose, like every movement, the simultaneous action of various counterbalancing agents. Large-scale use of new technique brings about radical shifts in the entire structure of material production, requiring a realignment of all levels of production, personal and material, and an adequate economic organization of society.
