"And for man to look upon himself as a capital good, even if it did not impair his freedom, may seem to debase him... by investing in themselves, people can enlarge the range of choice available to them. It is one way free men can enhance their welfare"

The passage explores the idea that individuals can be seen as "capital goods", valuable resources that can be invested in, improved, and utilized for higher productivity. Traditionally, capital goods are physical objects, such as machines or tools, that contribute to the production of wealth. When the same terminology is applied to human beings, it can feel dehumanizing or reductionist, as if it strips people of their intrinsic dignity and freedom, reducing them to mere instruments of economic output. There is an underlying discomfort in equating the human spirit with inanimate objects whose value is derived from their utility.

Yet, the author recognizes the transformative power of human investment. By investing in themselves, through education, training, health, and skill development, people expand the range of choices available to them. This process enables greater freedom, as increased skills and knowledge open new opportunities in life and work. Far from diminishing personal dignity or freedom, this kind of self-investment enhances an individual's ability to pursue their goals and adapt to changing circumstances. The growth is not limited to economic benefit; it extends to a broader conception of welfare, encompassing personal fulfillment, self-realization, and autonomy.

The tension arises between the economic perspective, which values human capital for its contribution to productivity, and the humanistic perspective, which prizes individuality and moral worth. Schultz reconciles these views by emphasizing that self-investment is a voluntary act performed by free individuals, not an externally imposed demand. When people freely choose to educate and improve themselves, they exercise agency. The resulting increase in welfare is both economic and personal. Rather than debasing the individual, viewing oneself as capable of self-directed improvement can be empowering. This capacity to enhance one’s own potential is a fundamental aspect of freedom and self-determination in a modern society.