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Philip Hammond has been trying to persuade conservatives that tax increases and spending cuts are needed to reduce the deficit. In theoretical economics, investment means buying (and therefore producing) capital goods - not being consumed but being used in future production. Examples include building railroads, or factories, cleaning the land, or allowing yourself to go to college. Strictly speaking, investment in formula GDP= C + I + G + NX is also part of gross domestic product. In that respect, the function of investment is divided into non-residential investments (such as factories, machinery, etc.) and residential investment (new homes). The correlation between I = (Y, I) is known to have a close relationship with income and interest rates. Higher incomes would boost higher investment, but higher interest rates would discourage investment because it would be more expensive to borrow. Even if companies choose to use their own funds to invest, interest rates represent the opportunity cost of investing in those funds rather than the interest that will lend out. The capitalist mode of production first developed from industry and gained dominance, then gradually expanded to agriculture. Because there are two kinds of monopoly in the agriculture, the monopoly capitalism and operation of land and land ownership of monopoly, so it does not have such as like the sort of free competition in the industry, thus hindering the average profit margin. Therefore, the excess profit in agriculture is converted into rent. First, the individual production price of land products is lower than the social production price. The second is absolute rent from the value of land products beyond the price of social production. Both rent entity, agricultural employment is part of the surplus value created by laborer, it embodies the land owners through agricultural capitalist production relations of common exploitation agricultural workers. On the surface, however, the rent is distorted as the value of the land itself, or the gift of nature, thus disguising the real class relationship completely.