32 lines
1.3 KiB
Markdown
32 lines
1.3 KiB
Markdown
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---
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entity_slug: encroachment_upon_capital
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entity_type: Process
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vsm_system: S3
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type_rationale: Encroachment upon capital is described as "the process by which individuals
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who spend beyond their income consume their capital stock," indicating it is an
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activity or transformation that occurs over time rather than something that exists
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independently.
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vsm_rationale: This process involves the misallocation of capital resources away from
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productive employment toward unproductive consumption, which is fundamentally a
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management-level decision about resource allocation and operational control of capital.
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classified_at: '2026-02-23T11:04:27.945094'
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---
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# Classification: Encroachment Upon Capital
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## Entity Type
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Process
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## VSM System
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S3
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## Type Rationale
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Encroachment upon capital is described as "the process by which individuals who spend beyond their income consume their capital stock," indicating it is an activity or transformation that occurs over time rather than something that exists independently.
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## VSM Rationale
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This process involves the misallocation of capital resources away from productive employment toward unproductive consumption, which is fundamentally a management-level decision about resource allocation and operational control of capital.
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