Starting Principles
This chapter presents an alternative theory of human capital. It rejects orthodox accounts based on labor scarcity and the idea that people are in a skills competition. With this in mind, the chapter outlines a different approach built on the starting premise that twenty-first-century economies are characterized by job scarcity. It first considers job scarcity and some of its implications for the development of an alternative theory of human capital. The chapter then looks at why translating human behavior into capital is different from other forms of capital assets and why the foundations of individual economic welfare under market capitalism are inherently insecure. Next, an alternative understanding of the self is presented, after which the chapter recognizes the fundamental inequalities in opportunities to develop individual capabilities. Finally, the chapter highlights the socioeconomic foundations of human capital, rejecting the overarching model of neoliberal economics from which orthodox theory derives.