Theodore Schultz: Capital

“And for man to look upon himself as a capital good, even if it did not impair his freedom, may seem to debase him”

Theodore Schultz

Source: "Investment in human capital," 1961, p. 2; As cited in: David L. Levinson (2005) Community Colleges: A Reference Handbook, p. 156
Context: The mere thought of investment in human beings is offensive to some among us. Our values and beliefs inhibit us from looking upon human beings as capital goods, except in slavery, and this we abhor... To treat human beings as wealth that can be augmented by investment runs counter to deeply held values. It seems to reduce man once again to a mere material component, something akin to property. And for man to look upon himself as a capital good, even if it did not impair his freedom, may seem to debase him... (But) by investing in themselves, people can enlarge the range of choice available to them. It is one way free men can enhance their welfare.

Freedom

“Although it is obvious that people acquire useful skills and knowledge, it is not obvious that these skills and knowledge are a form of capital, that this capital is in substantial part a product of deliberate investment, that it has grown in Western societies at a much faster rate than conventional (nonhuman) capital, and that this growth may well be the most distinctive feature of the economic system.”

Theodore Schultz

Source: "Investment in human capital," 1961, p. 1

People , Knowledge , Parting

“Much of what we call consumption constitutes investment in human capital. Direct expenditures on education, health, and internal migration to take advantage of better job opportunities are clear examples. Earnings foregone by mature students attending school and by workers acquiring on the-job training are equally clear examples.”

Theodore Schultz

Source: "Investment in human capital," 1961, p. 1

Health , Education , School , Training

“Investment in human capital accounts for most of the impressive rise in the real earnings per worker.”

Theodore Schultz

Source: "Investment in human capital," 1961, p. 1