Final answer:
Underinvestment in human capital can lead to inadequate resources, decreased productivity, and reduced well-being.
Step-by-step explanation:
The impact of underinvestment in human capital can have several consequences.
Firstly, not investing in public infrastructure can lead to inadequate resources for education, healthcare, and other essential services, resulting in lower levels of human capital development.
Secondly, underinvestment in social capital, such as education and training programs, can lead to a lack of skills and knowledge in the workforce, leading to decreased productivity and economic growth.
Lastly, psychosocially mediated effects can occur when individuals lacking human capital face barriers in accessing opportunities and resources, which can lead to reduced well-being and social inequality.