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Rethinking Economic Returns

This chapter argues for a fundamental revaluation of how the productive dividend is to be shared. If there is little prospect of narrowing income inequalities or upgrading the quality of life for all through existing supply-side policies, new human capital requires a wide-ranging policy response to address inequalities of condition alongside inequalities of opportunity. This is why the question of returns (economic prizes) is so important, because there is the need for a new narrative and public policy agenda aimed at spreading the benefits of economic activity to enable human flourishing across society. It requires a redefinition of economic purpose linked to reimagining both earning and learning and the relationship between them. A key insight of the chapter is that what is capitalized by individuals and firms rests on a social dividend that needs to be built into the distributional foundations of the new human capital. It shares the widely held view that the competition for economic prizes should be constructed so that every individual has an equal chance to win.