Cat Potts, Chapter 6, Question 3

The concept of human capital in and of itself is not necessarily a controversial one. However, it is the means by which human capital cycles with little room for growth and expansion to others that is problematic. The economic gap between the rich and the poor grows larger everyday. The divide will only continue to swell, due to the vicious cycle that Wheelan discusses:  Those with better educational opportunities can pay for their children to be educated, and their children will (generally) earn the degrees and  skills need to make enough money to pay for the education of their children, and so on; meanwhile the poor cannot afford to send their children to school, so they receive fewer opportunities to refine their skills and stay in the same economic situation as their parents, and so on. The cycle spirals, heading in opposite directions for either party and leaving little room for an opportunity for change. This is both unfair and counter-productive. The wealthy spend their excess funds on goods they don't necessarily need, while the poor can't promise their children any education after high school. Granted, that doesn't mean it's impossible for a person to get out of the vicious cycle, but the chances are not in their favor. Meanwhile, the money that the rich are spending on yachts and summer homes could be used to fund the education of those who can otherwise not afford it. The education of the poor then leads to the creation of more jobs, as the skills they obtain become worth more money, which they can then save so that future generations can have greater opportunities. As Wheelan mentioned in the metaphor of the farming community, the "pie" grows, rather than being resliced. As long as people are willing to spread the wealth around, there's no reason why we cannot begin to close the gap. However, is it likely that the wealthy man with the yacht will sell it so that some kid he's never met will just maybe have better opportunities? Probably not.