Best Investment Is in Human Capital, Says London School of Economics' Shafik

The video discusses the changing landscape of globalization and automation, highlighting the shift of manufacturing back to higher-income economies. It explores the risks of protectionism and its impact on global productivity and inflation. The importance of education and retraining workers is emphasized, with Denmark's Flex Security model presented as a successful example. The UK's productivity challenges are linked to education quality, and the need for investment in human capital is stressed to ensure a skilled workforce for the future.

What is one potential consequence of increased protectionism mentioned in the video?

• Reduced inflation

• Higher productivity

• Increased efficiency

• Decreased productivity

What is a major risk to the global economy in the next 12 to 18 months?

• Decreasing population

• Rising oil prices

• Protectionism and trade tensions

• Technological advancements

Which country is highlighted as having a successful model for retraining workers?

• United States

• Germany

• Denmark

• Japan

What is the main focus of Denmark's Flex Security model?

• Outsourcing jobs

• Reskilling workers quickly

• Increasing automation

• Reducing taxes for firms

What is considered the best investment for managing economic transitions?

• Infrastructure development

• Human capital and education

• Military spending

• Tax cuts

What incentive is suggested for firms to invest in their employees?

• Increased subsidies

• Reduced regulations

• Human capital tax credits

• Lower interest rates

Why might employers be hesitant to invest in worker training?

• Frequent job changes by workers

• Government restrictions

• Lack of available programs

• High costs of training