Think Human Capital Comes First? Think Again

Regarding the Alan Blinder column "We should focus on human capital, not capital" (Economic Viewpoint, July 27): As a young business owner (age 33) who got his start in business during the Reagan era, I am always amazed at some of the ivory tower theories, such as Blinder's. Obviously, he has never raised capital to start a business or tried to refinance a commercial real estate project.

A business needs capital before it can even utilize its "human capital." During the Reagan Administration, capital was available for businesses such as mine, which employed more than 200 people at its peak. During the current capital crunch for small business (which is very real), human capital is one of the first things to go.

R. Birch Dalton

Chairman & CEO

SEAR Corp.


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