Human Capital

Christina Wood

Mr. Aparicio

Econ – morning

24 June 2017

Honor bound

Human Capital

Human capital—the sum total of skills embodied within an individual—helps us to have a better understanding of why there are some extremely poor people and some very wealthy people in our society. [1] Roughly thirteen percent of Americans are poor, which is an improvement from a recent peak of fifteen percent in 1993, [2] yet in 2016 there was a record of 10.8 million millionaires nationwide. [3] What would we be without our assets? Human capital answers that for us. In Naked Economics, Charles Wheelan, the author, talks about Bill Gates and how if all of his assets were stripped away from him, he would still be a very successful man. This is because other companies would ask him to be their consultant, board member, CEO, or motivational speaker. His name is so well known that everyone would want him to be the face of their business, which then boosts his human capital. On the other hand, Wheelan gives an example of a man named Bubba who is not well known and doesn’t have much. He would have a very small human capital because nobody would know him and he would not be a good face for a business that is trying to attract more people. How can we boost our human capital though? A few ways is by getting more education/more experience, explore beyond your industry, and start at an early age. [4] Getting more education can help you to work harder, improve your ability to learn anything, and opens your mind to new ideas.[5] Education can also help you to get a better job, which increases your human capital. Exploring beyond your industry also helps to increase your human capital because when some business’ fail and people lose their jobs, they need to find other jobs quickly, so exploring beyond just one study can help you to do this. Lastly, starting at an early age can help to boost your human capital because when it comes to investing, the longer time periods smooth out risk and offer opportunities for compounded returns. [6] By doing these three examples your human capital should increase. Overall boosting your own personal human capital can help you to live a better, and richer, life in our society today.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Work Cited

[1] Charles Wheelan, Naked economics: undressing the dismal science (New York: W.W. Norton & Company, 2010).

[2] Charles Wheelan, Naked economics: undressing the dismal science (New York: W.W. Norton & Company, 2010).

[3] Clifford, Catherine. “A record number of Americans are now millionaires, new study shows.” CNBC. March 24, 2017. Accessed June 24, 2017. http://www.cnbc.com/2017/03/24/a-record-number-of-americans-are-now-millionaires-new-study-shows.html.

[4] “10 Ways to Boost Your Human Capital.” Consumerism Commentary. October 15, 2015. Accessed June 24, 2017. http://www.consumerismcommentary.com/10-ways-to-boost-your-human-capital/.

[5] “10 Ways to Boost Your Human Capital.” Consumerism Commentary. October 15, 2015. Accessed June 24, 2017. http://www.consumerismcommentary.com/10-ways-to-boost-your-human-capital/.

[6] “10 Ways to Boost Your Human Capital.” Consumerism Commentary. October 15, 2015. Accessed June 24, 2017. http://www.consumerismcommentary.com/10-ways-to-boost-your-human-capital/.

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