Path Home Shows 2009 Show Archive October 2009 Show 0941 Interview with Rob Dugger

Interview with Rob Dugger

Human capital is the value of a person's skills and knowledge that they bring to the workplace. We visit with Hanover Investment Group's Rob Dugger about the economics of an educated workforce.
Interview with Rob Dugger

Rob Dugger

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Rob H. Dugger
Partnership for America's Economic Success

Show Dates

Show 0941: Interview with Rob Dugger

Air date: October 11, 2009

 

Transcript

Rob:  To most people the word "capital" brings to mind a bank account or shares in stocks, but there is another kind, "human capital" that values the skills and knowledge people bring to their jobs.  We had the chance to sit down and talk to Rob Dugger, managing partner of Hanover Investment Group, on the economics of an educated workforce.

Rob Dugger:  If you're building prisons, and not building schools, that's the measure of the resources you're leaving behind.  If you don't focus on those early years and get that right, you're absolutely leaving money on the table.  You're just burning money.  Because later on, you're going to pay seventy, fifty to seventy thousand dollars a year, to deal with that person in the criminal justice system.  You're going to lose hundreds of thousands of dollars over a four, five, a ten year period from reduced earnings and tax payments.  That employee, that person is not going to be able to get a good job, they're not going to have strong earnings, and they're not going to pay much in the way of taxes.  They are not going to be able to form families or help make a strong community or attract people to Oklahoma City or to Tulsa.  That person will become a drag on the local and the state economy.

Rob:  As we compete with those newly developing economies, of say China and India, in some ways it seems that they have the luxury that they have so many people that they may only educate the top tier of their society, where in this country we do try to educate everyone.  Do we find ourself at a disadvantage because of that?

Rob Dugger:  We absolutely have to make sure every single one of our kids is as competitive as possible.  We have to make sure every single one of our kids is socialized, able to work in teams, able to form businesses, able to form families, able to make for strong communities.  Every single one of them has to be able to do that because our country is relatively small.  The Chinese, if they just educate, super educate, one percent of their population, one percent, they have a competitive workforce that is bigger than ours.  They'll have a hundred and thirty million talented, team oriented, ready to go young adults, and we'll have seventy, eighty, ninety, a hundred million who aren't.  And we lose.  It's real simple.

Rob:  So it sounds as if workforce development is going to be a key to solving this current crisis.

Rob Dugger:  Whether we're talking about financial sector problems or economic growth problems or economic recovery problems, we have to be focusing our energies on making sure that our kids have the social skills to work effectively together, the capacity to trust each other, and form friendships and form families and form communities.  Those skills, together with basic education, engineering, science, literature, music, all of these basic education skills, that's what makes for a competitive workforce.  If we've got a competitive workforce, we will do okay in the world to come.  If we can't, if we don't, if we don't invest in workforce, our outlook will be steadily, steadily weaker, because so many other countries in the world already get this, and they're investing in their kids.

Rob:  Thank you sir.