How important is this human capital? According to recent estimates, the stock of human capital is over $750 trillion. According to a research report from JP Morgan called “U.S. Recession and Repression Are Only in Our Minds,” this is much greater than the roughly $70 trillion of physical and financial assets owned by American households.
As important as human capital is to economic success, it is not evenly distributed around the world. There is ample human capital already in the United States, but there are also enormous stocks of human capital—and potential capital—found overseas.
That’s from Nick Schulz who argues for the opening of skilled immigration in the US. [hat tip Professor Arnold Kling]
The way to enhance human capital is through economic freedom.
Economic freedom is not just about trade freedom, but also of freedom of movements (or social mobility)—where people can choose places on where to live and work or do business.
A liberal migration environment provides greater chances for people to discover on their abilities and to work on these for them to realize their fullest potentials as productive citizens.
And increasing human capital translates to a deepening society’s division of labor which should mean better chances to attain economic prosperity, as well as, social stability.
Also a liberal migration environment that would allow people to vote with their feet, would compel governments to become competitive and increasingly foster receptiveness to civil liberties which likewise reduces repressive political actions.
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