US Human Capital Structural Change
The sector mix has changed since the implementation of supply side theory by economists and politicians in the US. With respect to the Fed data, that breakdown in the UniServEnt report is:
- P1 – Federal Government accounts
- C1 – State & Local Government accounts
- P2 – Household, Non-profit, Non-corporate non-financial Business
- C2 – Non-Financial Corporate & Financial Business with Rest of World Financial
With the addition of Human and NR&I capital to the Public (P1) sector and NR&I to the Common (C1) accounts, the sector mix changes accordingly, where the remaining two sectors show only the real asserts of the previous slide.
The Mix – Log graph clearly shows the exponential growth of population and hence the valuation of human capital, with the associated physical and value increase of infrastructure, land, and resource in both the Public (P1), presented here as federal, and Common (C1) sectors of state and local government, in particular of roads, schools, and localized structures. This is in contrast with the relatively flat line of (P2) and (C2) real asset valuation and production during the 2005 to 2013 period.