Converting Human and Erotic Capital into Cash

There is a lot of talk about passive income. Passive income is income that you receive (e.g. from shares or bonds) that require no work. Active income is income that requires you to do something e.g. when you get a job and work. While there is much attention on passive income vs active income, there is little discussion or focus on the capital upon which this income is derived. Passive income comes from what I call passive capital whereas active capital includes capital that requires you to work in order to derive an income from it, and these types of capital can appreciate (e.g. human capital if you build your skills) or depreciate (e.g. erotic capital if you let yourself age).

In spite of what people say about the rise of socialism, I believe that capitalism still rules the world. Government workers simply work for those who own capital. Capital is the “means of production.” It is whatever makes money. We are all born with human capital i.e. our skills and ability to work and earn a salary from it. In addition to human capital there are also those men and women who have “erotic capital” (also known as sexual capital) that allows them to charm others. When we humans enter life, we are faced with the challenge of working so that we can convert human capital and erotic capital into cash.

Human capital and erotic capital is different from other types of capital e.g. financial capital (e.g. stocks, bonds, or ETFs) in that work is required to convert the human or erotic capital into cash. Financial capital is different because e.g. you can own stocks and bonds, do nothing, and receive income from it. However, to derive income from human capital (e.g. skills), you must work. To derive income from erotic capital (your good looks, charm, people skills, etc), you must also work (although it comes naturally to some).

Because passive capital requires no work whereas active capital requires work, I believe that this is where overeducation or oversexualization can become a problem. There are many people who seek to build their human or erotic capital. For example, many people stop working and dedicate large amounts of money and time into degrees and qualifications. Their human capital grows significantly but it is a challenge for them because human capital cannot be spend. You need to work first to convert that human capital into financial capital. The same can be said of erotic capital. Many people are obsessed with networking, looking good, etc, and this may pay off, but like education there is a significant degree of uncertainty, and a lot of work is needed to convert that erotic capital into financial capital.

The old saying that you should “invest in yourself” should then be scrutinized. It makes sense to invest in yourself, but there are downsides.

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