When speculation investment becomes more reliable for income than being part of the production process of a company, it can be seen as a recipe for disaster for an economy. This is because speculation is based on unpredictable market trends and can lead to volatile financial outcomes. When individuals or institutions focus solely on making quick profits through speculation, they may neglect the long-term growth and stability of the company and the overall economy. This can result in a negative impact on the real economy, as resources and capital are diverted away from productive investments into speculative ventures. Furthermore, relying on speculation for income can create a false sense of economic prosperity, leading to a bubble that ultimately bursts and causes major financial crises. In contrast, being part of the production process of a company involves creating tangible goods or services, which contribute to the real economy and sustainable growth. Therefore, an over-reliance on speculation investment can be detrimental to an economy and it is important for individuals and institutions to strike a balance between speculation and productive investments.
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