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Human and Social Capital

Human capital refers to the economic worth of the quality of labor influencing

productivity. On the other hand, social capital measures the value of intangible and tangible

resources and the effect that the network of relationships among people has on the resources

(Tittenbrun, p.460). Both human and social capital has a positive impact on an individual, and its

combination is necessary for the success of businesses. Therefore, it is crucial to invest in these

two forms of capital.

Social capital and economic freedom are essentially interrelated and are associated with

economic growth. There are implications for social stability and economic aspects of quality of

life for the interplay between social capital and economic freedom. If freedom promotes and

calculates social atomism, it can be that we gain the world while losing our souls. On the other

hand, if freedom promotes strong social ties, the stability of liberal capitalism could strengthen

itself (Jackson et al., p.10). Social capital establishes leadership skills in individuals, strengthens

reciprocity, creates more substantial teams, and promotes networking (Tittenbrun, p.460).

Human capital, however, solves structural unemployment, promotes the quality of employment,

adds value to the limited raw materials, and promotes sustainability.

One can increase his social capital by helping and providing help and knowledge,

strengthening existing relationships, and trusting or trustworthy. In essence, increasing ones’

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social capital means generating goodwill and being a good global citizen who develops networks

and a reputation for integrity, confidence, and trustworthiness. For a person, social capital means

knowing many people well, although it is more than that. It is about having optimistic solid

relationships with many people from different backgrounds and positions embedded in favorable

social structures. Technically, social capital is boosted by speaking, connecting, caring, sharing,

appreciating, and trusting.

Several problems come with developing social capital, and one of them includes the way

in which it instrumentalizes specific forms of communal life. Social capital's concern tends to

provide a timely reassertion of the benefits of intimate social ties away from economists'

arguments. Another problem is that there has never been a pinpoint of why informal social

networks' participation possesses the benefits tied to it (Tittenbrun, p.455).

Although stereotyping is incorrect, it is efficient for organizing large quantities of

evidence mentally. This is vibrant to people’s minds, as it allows them to organize and predict

their world. If one has organized everybody into simpler categories, new or unexpected

information about a person is avoided. The allocation of general group characteristics to

members of a particular group saves time and meets the need to predict the social world around

us; therefore, this aspect affects social capital.

To promote one’s freedom through self-conception and social capital, one has to allow

his team to make use of their talents, give them room to make mistakes, enable them to work

together towards a compelling vision, show up leadership skills, create a friendly and fun

working environment, be decisive and purposeful and finally, never underestimate the power of

emotional quotient.
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Works cited

Jackson, Jeremy, et al. “Economic Freedom and Social Capital.” Applied Economics, 25 June

2015, pp. 1–15, 10.1080/00036846.2015.1058912.

Thalos, M. “Degrees of Freedom in the Social World: Towards a Systems Analysis of Decision.”

Journal of Political Philosophy, vol. 7, no. 4, Dec. 1999, pp. 453–477, 10.1111/1467-

9760.00086.

Tittenbrun, Jacek. “Social Capital: Neither Social, nor Capital.” Social Science Information, vol.

53, no. 4, 3 July 2014, pp. 453–461, 10.1177/0539018414532318.

Tomer, John F. “Integrating Human Capital with Human Development: Toward a Broader and

More Human Conception of Human Capital.” SSRN Electronic Journal, 2014,

10.2139/ssrn.2426237.