Passage: Human capital refers to the skills, knowledge, and experience possessed by an individual, viewed in terms of their value to an organization or country. Economists argue that investing in human capital through education and vocational training is the single most effective way to drive long-term economic growth. Unlike physical capital, such as machinery, human capital does not depreciate in the same way; in fact, it often appreciates as a worker gains more experience. Furthermore, a highly skilled workforce is more adaptable to technological changes, allowing the economy to transition more smoothly to new industries. Governments that prioritize education often see higher levels of innovation, higher wages, and lower rates of social dependency.