Question

Which capital would you consider the best — land, labour, physical capital and human capital? Why?

Answer 1

• Human Capital is the best resource.
• Physical Capital and land resources need human capital to become useful, those resources cannot become useful on their own.
• Human capital utilises the land, labour and physical capital to achieve higher growth of the economy.
• The Green Revolution in India is an example of human capital having better knowledge which led to increased production and thereby helping to achieve self-sufficiency in the domain of agriculture in India.
• The IT revolution in India was led by the human capital. This goes on to prove the superiority of human capital resources over other types of resources.
• A country like Japan has very little resources, yet they are a very developed country, this is the result of investment on its people by Japan, through healthcare and education.
• These educated citizens of Japan made efficient utilization of other resources like capital and land.
• The investment in human capital is through healthcare, training and education.
• A healthier and educated person not only helps himself by earning higher incomes, but society also gains indirectly.