Human capital



I went in to town early this morning and in a roofed and enclosed line of bus shelters, there was a homeless person covered in a sleeping bag, lying down covered head to toe. Reflex reaction was someone needs to help this person, why as a society are we allowing people to lay in the streets like this.

 

After the initial hit, the philosopher/economist kicked in. Why is this person lying there? Is it really not a homeless person but someone trying to make a political point? Perhaps this person has refused all help from local council officials of various sorts and prefers this lifestyle to others? Mental illness, drug abuse, &c.

 

On reflection today this took my thoughts back to a Socialist that enjoys writing sophistry to the letters pages of our local Gazette. He asked why should Bill Gates be sitting on $Bn of wealth while half the world starves. His answer of course is Socialism, an ism that has failed everywhere it has been tried, unless we talk of mixed economies.

 

But to answer the question why Bill Gates is rich, relative to most on this planet is 'human capital'. Strip Bill Gates of all his assets and his human capital, his life skills, training, and knowledge would allow him to thrive. Strip Tiger Woods of everything and loan him some golf clubs, he will be winning tournaments.

 

I chose not to go to school, to college, to university. I chose not to get a trade. I chose to take low paid manual work in the safe knowledge that I would never really achieve the dizzying heights of being one of the 'rich' and would stay working class while I refused to invest in human capital.

 

Top lawyers, surgeons, footballers, and internet gurus are rich because they invested time, energy, money, whatever it took in increasing their personal human capital.

 

How many people can kick a ball like David Beckham? Now how many people can say 'would you like fries with that?' The Beckham's of this world are limited, the McDonald workers are plentiful.

 

Instead of hating or feeling envy towards those that have done better than ourselves, surely we would be better off, where applicable, to invest in our own human capital and improve our own chances of success in the world?

 

With the exception of the minority that have genuine disabilities that stop them getting ahead (see Stephen Hawking for a person that more than overcame disabilities), we all have the opportunity to invest in ourselves.

 

There are numerous free courses of education available, public libraries are great places of learning for free. For those with time and money, going back to college/university or learning a trade can be a great starting point.

 

We can't all be a Bill Gates or David Beckham, but we can all start investing in our own human capital instead of eating crisps and drinking beers on the sofa in front of daytime television.