EOTO 2- The Human Capital Theory:

     Human Capital Theory is the idea that the more you invest in people, through their education, training, and health, the more productive they will become. In other words, it is saying people can be seen as a kind of capital, and as you upgrade them, they generate more value, just like machines and technology.  

    The appeal of Human Capital Theory is it gives a strong reason to invest in education and skill-building. If the government views their citizens as human capital, it will be more willing to fund public schooling, health services, and vocational training. For individuals, it is a way to understand how studying harder and learning basic skills would lead to better job opportunities and higher pay. To sum this up, the idea that if you invest and work hard on yourself, your reward will be bigger, which is motivating to humans. 

    While Human Capital Theory seems appealing, there are some flaws. One being that it tends to oversimplify things, it treats people like machines, saying if you put in a certain amount of everything you will get a certain amount of productivity back. But not everyone is the same, some people do not get the same return from their "investment". For example, many people go to college, work hard, and
invest heavily into their future. Sometimes it is still a struggle to find a job, especially if they are from a marginalized background. This theory does not consider racism, sexism, or class barriers. It assumes the playing field is level for everyone, which is not the case. Also, by framing education and skills solely in the terms of economic output, it ignores the deeper purpose of learning. Not everything should be based off productivity, some people choose to study art, history, or philosophy, not to gain something but to understand the world better for themselves. Human Capital Theory is broad and does not take into account the personal interests of the people.  

    Next, Human Capital Theory is very impactful to society. To start, the idea of work hard on yourself get a bigger, better reward, leads people to blame themselves or other people for being unsuccessful. Blaming others for their economic struggles, like if someone is unemployed or underpaid. This theory would suggest that those people did not invest in themselves enough. But it tends to forget that some people may not be able to afford schooling, or were busy raising a family, or were just living in a place with no good job opportunities. It also reinforces a very narrow view of human worth, where people only have value if they are economically productive, which tends to draw negative light to elderly people and stay-at-home parents who don't fit the productivity guidelines. Different segments of society tend to feel differently about this. Wealthier people tend to have more access to education and healthcare, so they see the benefits of this theory more easily. On the other-hand people from poor or marginalized communities are more likely to face barriers, so they tend to get left behind, even if they work twice as hard.  

    On a personal level, Human Capital Theory is inspiring but also stressful. It shows that I have the power to improve my future by continuing my education and developing skills. But it also brings the idea that I could never do enough to be on top, that I would constantly have to upgrade myself to be able to keep up with others.