Angela Scharf, Chapter 6, Q.6

     Human capitol is the sum total of skills embodied within an individual. Examples include: level of education, charisma, word experience, or essentially anything that defines us as an individual rather than a job, house or socioeconomic status. The importance of human capitol is that an individual with good attributes can be placed in almost any situation and radiate because of their uniqueness and ability to communicate intellect. Productivity and human capitol go hand in hand because the knowledge of a person will lead to more efficient ways to do things, therefore higher productivity. An example of this is the reason behind why America is one of the richest countries in the world; it's because we are simply better at producing goods and services. The worth of our society as a whole is based on our total stock of human capitol. Investing in human capitol is one of the smartest moves an economy can make.
     Why is India one of the poorest countries in the world? It's because over 35% of the population is illiterate. Why should we care, other than the fact that we should generally try to be moral human beeings and keep track of other human suffering? It's because if other world countries experience productivity growth, it makes the U.S. wealthier because they can now afford to buy our goods and products. One of the biggest mistakes a government can make is thinking that there is a fixed amount of work to be done in the economy. Instead of "replacing the pie" we can make the pie bigger through productivity.