James Manyika

I don't mean capital as in the moneyness, but just the actual capital equipment and machines and so forth in our system.

We've built a set of incentives, for example, that encourage companies to invest in capital infrastructure, capital equipment.

They can write it off, for example.

We encourage investments in R&D, for example, and tax incentives to do that, which is wonderful because we need that for the productivity and growth and innovation of our economy.

But we haven't done anything

nearly enough or equivalent to those kinds of incentives with regards to investments in human capital.

So you can imagine a much more the productivity and growth and innovation of our economy, but we haven't done anything

nearly enough or equivalent to that, those kinds of incentives with regards to investments in human capital.

So you can imagine a much more concerted effort to create incentives for companies and others to invest in human capital and be able to write off investments in scaling, for example, to be able to do that at equivalent scale to the incentives we have for other forms of investment, like in capital or in R&D.

So that's an example of where we haven't done enough on the

incentive up front, and we should.

But I think there's more to be done than just incentives for the inequality question, but those kinds of incentives would help.

I should tell you, Lucas, that one of the things that we spent the last year or so looking at is

trying to understand how the social contract has evolved in the 21st century so far.

So we actually looked at, for example, the roughly 23 of the OECD countries, about 37 or 38 of them, but we looked at about 23 of them in detail, just to understand how the social contract had evolved.

And here, because we're not sociologists, we looked at the social contract in

in really three ways right how people participate in the economy as workers because that's part of you know people work hard and part of the exchange is that they get jobs and they get income and wages and training so people participating as workers is an important part of the social contract

people participating as consumers and households who consume products and services, and then people as savers who are kind of saving money for future, you know, for their kids or for their future, et cetera.

And when you look at those three aspects of the social contract in the 21st century so far, it's really quite stunning.

So take the worker piece of that, for example.