Today I introduce a question to you, a pertinent one, “Is knowledge not the only factor of production?”
I theorize I postulate; “Knowledge is the only factor of production” or “Knowledge is the origin of production”
You are free to disagree, and I am open to a debate on this, Edugist can organize an “Instagram live” session for anyone who wishes to debate this, but for the purpose of today’s reading, stay with me if not for anything to develop your points to counter my theory.
Let’s start with the prehistoric man; Picture a hairy man covered in clothes made of animal skin using two stones and dried shrubs to make a fire. Firstly, to make the animal skin clothes, he first had to KNOW that he was UNCLAD and easily cold, especially in the cool of the day, next he then had to KNOW maybe by observing the animals that despite the weather they don’t seem cold so their skin must be a covering, so he slaughters an animal and uses its skin to PRODUCE his garment.
Then he needs to light a fire to make a meal, First, he KNOWS that the rumbling feeling in his guts is hunger, then he KNOWS that that animal he slaughtered can used for food, He KNOWS he cannot eat it raw like that, He KNOWS that fire can make it edible, He KNOWS that if he hits two stones together it will create a spark that can ignite dry leaves to PRODUCE a fire!
Stay with me, He notices where he dropped the seed of a fruit he ate, another plant grew there and bore the same kind of food so he KNOWS now that putting a seed in the LAND will result in a plant that will yield fruit, then he figures that if I want more of this fruit then I must plant more, then he gets his children to serve as LABOUR to plant more seeds. Now he has several plants yielding seeds, his neighbour has done the same process but with the seed of another plant, and he wants that plant too, then he approaches his neighbour, and tells him that he will give him some of his own seeds if he can also give him some of his in exchange, the neighbour agrees, he collects the seed of the new plant and that serves as CAPITAL for a new plantation. He now KNOWS that One seed planted on LAND will produce a plant with many fruits and many seeds, He now KNOWS that if he employs his children as LABOUR he can do more of this, He now KNOWS that with more seeds he can approach more neighbours who have discovered other edible fruits he can exchange his own seed for seed CAPITAL to have a variety of plantation, this process is evidently profitable, he decides to keep doing it and that is ENTREPRENEURSHIP.
What are the factors of production as taught in elementary economics? Hope you now get my drift, on why I theorize that
Knowledge is the only factor of production; it produces the rest!
Amongst Business Thought leaders “Knowledge being a factor of production” seems to be an epiphany of recent times, in actual fact knowledge has always been the main factor of production, we only discovered it due to the present technological evolution, and as the prehistoric man evolved from discoveries, the present-day man has actually evolved due to this discovery, that is why I feel sorry for any business person who is not committed to gaining new knowledge!
To unlock new vistas of opportunity in that business you must gain new knowledge either by partnering with or employing someone who has it, or you go get it yourself! In all thy goals setting and getting for next year, get knowledge.
In the coming publications, we will be introducing new knowledge for you to consider as you navigate the business world.
Be of good cheer, as I bring you good tidings from the people in Abuja, Nigeria.