Final answer:
Investing in teachers and educational resources, reorganizing educational systems for better incentives, and promoting research and development through government spending and tax incentives are key fiscal policies to improve human capital.
Step-by-step explanation:
Fiscal Policies to Improve Human Capital
Fiscal policies play a significant role in improving a society's human capital. The central approach lies in fostering a more educated workforce. One effective method is increasing investment in education; this can involve spending more money on teachers and educational resources to improve teaching quality and learning outcomes. Reorganizing the education system to offer greater incentives for success is another strategy that can motivate both students and educators.
Additionally, promoting research and development (R&D) is crucial for nurturing new technologies and encouraging innovation. Fiscal policies here may include direct government spending on R&D and tax incentives for businesses engaged in R&D activities. These initiatives can lead to the development of technologies that have widespread applications in the economy and contribute to long-term economic growth.
It is also important to note that not all educational investments need to come from government spending; however, government involvement is especially significant in low-income countries and in creating a baseline for educational access. For high-income countries like the U.S., the focus may be more on optimizing existing educational expenditures and improving the quality of educational outputs.