Sunday 2012-11-25

Recently, it seems we keep seeing people pointing to the new lower employment equilibrium, and essentially repeat the old strategy of adding human capital to labor.

As automation gets more flexible and our world becomes more capital-rich, it becomes more valuable to measure value well and deploy capital so as to create value. In the past we used to train people to manipulate a machine, now we must learn to manipulate machines and processes.

Working with capital to increase value implies having a grasp of the various forms value can take. This seems to be the biggest stumbling block, as most mass media seems to approve of things that can be construed as "hands-on", as opposed to trading or finance-related work.

Luckily, as the economy slowly turns around, deal-making and capitalism should return to the typical lauds and triumphalism that we've seen in the past.