Can We Bend the Arc of Global Capital toward Justice by Investment in Human Capital?
The Johns Hopkins University, retired
Please cite the paper as:
Arnold Packer, (2016), Can We Bend the Arc of Global Capital toward Justice by Investment in Human Capital?, World Economics Association (WEA) Conferences, No. 1 2016, Capital Accumulation, Production and Employment:, 15th May to 15th July 2016
Can We Bend the Arc of Global Capital toward Justice? Yes, provided “idle” capital is wisely invested in human resources. The world economy is suffering from a shortage of investment opportunities. The signs are slow economic growth in the face of very low, even negative, interest rates. Prominent economists (Gordon, Krugman, Summers, Stiglitz) forecast that these conditions will persist for many years.
At the same time, a million children are born in poverty each year in the U.S. Careful evaluations show decent (seven to ten percent according to James Heckman) returns for strategic interventions targeted on these children and their families. Pay for Success, funded by Social Impact Bonds, are a means for controlling the risks associated with these interventions. Providers are paid only if results are achieved. Investors experience with PFS during the last five years in Great Britain and elsewhere have encouraged two statewide efforts (South Carolina and Connecticut) in the United States.