ABSTRACT
This chapter describes the time factor from the point of view of the economy as a whole. During the period of construction of new investment projects social accumulation is used for increasing production and national income and for creating new accumulation for further reproduction on an enlarged scale. The chapter discusses the construction period from the point of view of capital engaged in the process of construction, from the aspect of the fall in value of this capital caused by constant technical progress. Technical progress is a continuous phenomenon in every country and its immediate consequences are increased labor productivity and a decrease in the value of goods. In other words, because of growing labor productivity—which is a permanent process—there is not only a drop in the value of products which are created under these new conditions, but even the value of previously manufactured goods falls.
