Shortcomings of Human Capitalism

Human capital or human capitalism has become thethe most part, will determine who will eventually
explanation of the labor market and earnings inequalitysucceed in society and who will not and are based on
put forth by economists. While not a theory of raciallaws that riddled with negative perceptions. Children
and gender inequality in the labor market, this line ofwho are designated a lower track are usually
reasoning has major implications for minority andminorities and from the inner cities of America.
gender disadvantage in the labor market.The main shortcoming of the Human Capital Theory is
Human capital is the education, skill levels, and problemthe belief that education alone will end poverty. Even if
solving abilities that will enable an individual to bethere was a law that made it mandatory for every
productive worker in today's society. It contends thatchild born in America to receive a free college
investment in education will improve the quality ofeducation, there would have to be enough jobs in the
workers and, consequently, increase the wealth of thelabor market for the influx of future college graduates.
community (Spring, 2006).According to Spring, during the early 1970s, an
Human capital as put forth by proponents such aseducational inflation occurred when the labor market
Jacob Mincer (1962) and Gary Becker (1964), arguewas flooded with college graduates and the
that inequality exists in the labor market because someoccupational structure was not able to supply these
workers are more productive than others. Productiveindividuals with jobs. As a result, people with
workers are more productive because they havedoctorates were driving taxicabs and waiting on tables.
invested more in themselves in human capital that willIn the end, the labor market proved to be the main
potentially increase their future monetary income. Iffactor in determining employment, not education
everyone invested the same amount of resources in(Spring, p27).
human capital, the distribution of earnings would beHorace Mann's noble if misguided idea that the equality
exactly the same.of opportunity would reduce social tensions between
In short, inequality in the labor market occurs becausethe poor and the rich by instilling the belief in people that
(1) some people have more education than others, (2)everyone has an opportunity to succeed has not
are willing to invest more in their human capital, and (3)come to pass, at least not in minority communities.
choose to work in jobs that pay higher monetaryOnly a ninny would believe that the educational system
incomes than those who like being on the low end ofin this country provides everyone with an equal
the economic totem pole.opportunity for advancement and potential wealth. In
However, this mentality is one of the manyJonathon Kozol's book, Savage Inequalities, he
shortcomings of human capitalism. This theory doesdiscusses the plight of students in several cities in
not take into account life altering variables such asAmerica such as Chicago, New York, and Camden,
racism, sexism, classism and massive amounts ofNew Jersey who because of their caste in this
inequality in the educational system. Because of thesesociety, face horrific obstacles while trying to obtain an
variables, Latinos and African Americans are threeeducation. The conditions these students face are
times more likely to live in poverty than Whites.discouraging, oppressive, depressing, and disheartening.
Women account for two-thirds of the poor.It is no wonder that children in these districts drop out in
Proponents of this theory would like to think that thesesuch great numbers. Education should be equal, free,
individuals are incapable of achieving the same financialand offered to all, regardless of age, race, or disability.
success as their better educated, wealthierThe education gap in the U.S., like the wealth chasm, is
counterparts and have not invested the proper amountgrowing ever wider, and equal educational opportunity,
of human capital to achieve success. This argument isthe perennial dream of working and progressive
aligned with social Darwinism; survival of the fittest, thepeople, is being undermined by conservative forces.
notion that the poor are biologically unfit to competeAlthough free universal public education was adopted
and are to blame for their own poverty strickenearly in U.S. history, equal opportunity has never been
existence.realized. Since colonial times, education has been
Individuals who have not been able to accumulateprovided free of charge for most school aged children
large amounts of human capital are not powerless duein local communities (excluding, at various times, slaves,
to their lack of extraordinary ability but because of thenative Americans, migrants, pregnant girls,
same systematic barriers that have existed in thisspecial-needs students, and other neglected groups),
country since its existence: discrimination andand have been primarily financed by local taxes and
institutionalized racism. The federal government'scontrolled by the ruling classes of local communities.
continuing disregard for the overwhelming majority ofThese two features of American education: local
its citizens has become more apparent as thefinancing and local control of schools initially established
incessant suffering of the working class and theand continue to maintain inequality in American
abysmal excuse for an educational system are noteducation.
only ignored but antagonized with rudimentary policiesThese reasons are just some of the shortcomings of
and expedient solutions.human capitalism. How can individuals build up their
This is all done at the expense of the most vulnerablehuman capital when they are faced with an
members of society, the children. One of the mosteducational system that is inherently unequal in which
astonishing and under reported statistics in this countrywealthy communities have had abundant resources
is that children are forty percent of the poor but is onlyavailable for education while many poor communities
twenty-six percent of the population. These childrenhave never had adequate funds? When welfare
not only lack money but the opportunity for a decentrecipients are told to drop out of school in their final
education. Students upon embarking on the first day ofsemester of college, make 10 job contacts a week,
school are immediately inundated into a governmenttake a class on how to fill out applications and make it
employed tracking system that has been used sinceto work on time in order to receive cash benefits?
the 1920s when the government decided to separateAlthough education is extolled as the key to success in
students by academic ability (Spring 2006). Thisthis society, educational opportunities for the poor are
system places students on predetermined pathslimited. It seems as if the children of the poor are
based on subjective criteria, creating pathways that willconsidered to be nothing more than fodder for low
inevitably socialize the students into their expected rolepaying jobs, unworthy of social investment, while the
in society. Infested with inequality and discrimination, thischildren of the affluent have access to unlimited
system degrades children based on their ascribededucational opportunities.
status (race, class, gender). These categorizations for