In economics the term “human capital” describes an individual’s productivity—both for themselves and their quality of life, and for an organization or their nation.
But not just another definition, human capital is packed with potential power that must become inherent to the K-12 pipeline. Mandatory must be daily monitoring and enhancement.
To make this possible, the HSe4Metrics platform uses an internal metric it refers to as capitalization rate (“cap rate”).
The HSe4Metics platform brings the promise of unparalleled cap rate development for every K-12 young person—perhaps surprisingly, even for those at the highest levels.
You may recognize Malcolm Gladwell as the brilliant author of best-sellers such as Outliers. His insights are often both exceptional and unconventional.
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HSe4Metrics is not alone. Rather than confine the term capitalization rate to investing and financial analysis, Mr. Gladwell applies it to people. Drawing on his background in psychology, sociology, and social science, Mr. Gladwell echoes the insight of human cap rate—and the tragic failure to develop it.
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Malcomb Gladwell's simple but eloquent question
What percentage of people with the ability to achieve something actually succeed in doing so?
He cites a stark example from an East Tennessee high school, where only 1 in 6 students awarded football scholarships ultimately attend college. This disheartening cap rate of 16.67% raises a broader question: In a society so fixated on sports, how much lower are the cap rates for young people with talents in less celebrated fields?
The Terman study
Gladwell also references the Terman longitudinal study from the 1920s, which followed individuals with IQs of 140 or higher. Lewis Terman predicted that genius-level IQ would be the primary driver of success over 50 years.
Yet, within 30 years, the study revealed an unexpected truth: external factors, not IQ, were dominant constraints on success.
50% of graduating K-12 students in the U.S. cannot read, write, or do math at minimum NAEP proficiency.
The formative K-12 years are a once-in-a-lifetime opportunity for young people to exploit their personal cap rate.
However, the statistics are sobering: 50% of U.S. high school graduates fail to meet minimum NAEP proficiency standards, severely limiting their lifetime prospects and the quality of life for themselves and their families. Cap rate, which receives little to no attention from the national media, likely fares no better than NAEP.
Cap rate begins during the K-12 years.
Whether K-12 students excel, struggle, or fall somewhere in between, their futures may be shaped by missed (perhaps inexcusable) cap rate opportunities during their K-12 years—a sad realization that may become apparent in hindsight decades later.
Urgent for the competitiveness of the U.S. is to know how well—or how poorly—it is developing its human capital.
It must be cultivated and measured—nearly impossible within the constraints of a traditional K–12 schedule, but a natural fit for the HSe4Metrics platform.
As ED squandered the U.S. K-12 opportunity—including cap rate—did the leadership of DOL and other fed agencies sound the alarm?
Paramount among Department of Labor metrics are the size, education level, and trainability of the nation’s workforce. As the heads of high-cost federal agencies watched ED’s failures and the atrocious NAEP results, did any of them cry foul or step in?
Surely, the Secretary of DOL must have connected NAEP performance with tragic results for the U.S. workforce. (A potential loss of half the nation’s workforce is no small matter.)
Today, as global manufacturing giants like Apple, Amgen, and INVIDIA plan major expansions in the United States, a central concern becomes the size, quality, and readiness of the American workforce.