US Net Worth Structural Change
Human capital clearly warrants the expenditure of fiat funding as a basic income and valid public safety net for educational, medical, and retirement needs that a free market clearly cannot provide.
The sector mix in this slide has been changed according to the Excludable and Non-Excludable concepts of economic theory to group P1 & C1 property together and P2 & C2 together, with the understanding that the value of human capital is assigned only to the Public sector as productive capacity, based on the legal and moral fact that human beings are not Private property. To this sector we have also added the Financial Assets of P2 and C2 as a component of human capital including any net ROW accounting, which in the last two data sets is a debit. The P2 and C2 sectors therefore represent only real assets.
The Fed reports depict data in terms of Stocks and Flows. Stocks are assets, physically real or contractually financial, as of a given point in time and Flows are transactions, generally an exchange of title (ownership) of a real good or service in exchange for a financial document, accounted for over a given period of time. Stocks changed by flows give a new statement of stocks.
Stocks as property are categorized as to whether title or access to that stock, stated or tacit, is Excludable by an individual or group to other individuals or groups and is therefore Private property, or Non-Excludable, which entitles any individual or group access to that stock as Public property. Each of these two categories is subdivided based on whether its potential for use results in an inherent rivalry for simultaneous use. A spot on a public park bench is useable by only one individual at a time and therefore innately Rivalrous; a place to spread out a towel to sunbathe on a private beach is Non-Rivalrous, provided the beach has sufficient space.