David F. Ruccio — Human capital controversy

As I have long explained to students, the theory of capital is the most controversial topic in the history of economic thought because the theory of capital is the theory of profits—and therefore an answer to the question, do the capitalists deserve the profits they get? 

The original capital controversy was never resolved. But no there’s a new capital controversy, a controversy over human capital. It was launched by Branko Milanovic, based on Thomas Piketty’s refusal to include human capital in the other forms of capital he measures in his inquiry about the history and future prospects of wealth inequality.** 

Basically, Milanovic argues that labor is not a form of capital because labor involves a “doing” (work has to be performed in order for wages to be paid) while other forms of capital are characterized not by work but by nonwork, that is, ownership…
I’m with Milanovic on this. There is a fundamental difference between doing and owning.  

But I also think the human capital controversy has even larger implications.…

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Human capital controversy
David F. Ruccio | Professor of Economics University of Notre Dame Notre Dame