Human Capital Diversification vs Pancake Mix

I went to the grocery store yesterday (late morning) expecting either business-as-usual or empty shelves. I was surprised to see both. I’m currently regretting not taking photos because it probably will be business-as-usual by the time I go back.

Some shelves were empty, and others were full. What I saw was a direct visualization of what my neighbors don’t know how to cook.

Going through my store I could see that my neighbors know how to put jarred sauce on pasta. But I saw the opportunity to blend some canned whole tomatoes and make my own sauce. “International” foods were largely untouched, but anything in the local culinary lexicon was sparse.

The whole Baking Needs aisle was basically fine, except for the pancake mix which was all gone. This is really the whole story. Who buys pancake mix? Culinary illiterates.

(Disclaimer: I’m a biased source when it comes to pancakes. I take pancakes as seriously as 75th percentile Bostonian takes the fact that the Yankees suck.)

It takes a modest amount of skill to make pancakes, but the ingredients are cheap and YouTube wants to help you. Now is a great time to up your pancake game. But even if you just follow the directions on any random pancake recipe you’re stirring together flour, salt, baking powder, sugar, eggs, oil, and milk.

The mix will either give you a crappy shelf-stable replacement for the eggs and/or milk (yuck!) or hold your hand as you stir together some powder with eggs, oil, and milk.

Thinking back to my career as an omnivore, I can recall a time when I’ve bought ingredients I really should have made. I’m not judging people who don’t know how to cook, because I’ve been there.

What I’m pointing out is that those people are always going to have the hardest time when it comes to food shortages. I’d be in the same boat if I was shopping at a store that didn’t sell the limited set of ingredients I know how to use.

There’s a tension in economics that we don’t pay enough attention to: gains from specialization vs. gains from diversification. At a system level (and in a Principles class) the two go together. But at the level of individual there is a lot to be said for diversification–you’re more robust to change, resilient in the face of problems, and perspectives gained in one domain may have lessons to apply to others.

I’m grateful I haven’t taken my own human capital specialization so far that I can’t make my own pancakes.

3 thoughts on “Human Capital Diversification vs Pancake Mix

  1. Somehow, the acquisition of human knowledge often seems to lag the real demand for it …but fortunately, my wife knows multiple recipes for pancakes …

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