The City

The City

By

Calvin Wolf

Table of Contents

Chapter 1

Chapter 2

Chapter 3

Chapter 4

Chapter 5

Chapter 6

Chapter 7

Chapter 8

Chapter 9

Chapter 10

Chapter 1

0

"For decades, ‘investing in human capital’ meant educating and training workers, typically one’s own employees or citizens, to increase their level of skill and job performance. From governments considering it a macroeconomic improvement method to corporations considering it a revenue-enhancement and loss-minimizing investment, spending money to train and educate those in the labor force has long been a staple of economic progress. However, only recently have we explored the idea of directly investing in individuals for profit.

Traditionally, those who want to invest in their own human capital have to take out loans, either student loans or ‘loans’ from their employer, meaning they owe time on the job as repayment, in order to pursue further education or training. After the additional education or training has been completed, the interest or time owed can be excessive, hindering an individual’s quality of life and employment freedom.

More recently, income-contingent loans have become popular, allowing individuals much more freedom and economic security when pursuing additional education and training. These loans, though far less common than traditional student loans, allow recipients to repay the loans based on their post-education or post-training income. Those who make ample revenue pay more, while those who make less revenue pay little or nothing. Ideally, lenders make a profit because most recipients of income-contingent loans successfully parlay their investment in human capital into high salaries or wages, allowing them to pay back generously.

However, there are many limitations on income-contingent loans that can make them inefficient for both lenders and borrowers. Borrowers usually do not have to pay back any money unless their post-education or post-training income rises above a certain threshold, making lenders hesitant to invest. Another restriction reducing the incentive to lend is the fact that most income-contingent loans are both term-limited and have upper limits on income-based repayment. Income-contingent loans are often capped at ten to twenty years of repayment and a maximum of ten to fifteen percent of a recipient’s income, plus a maximum dollar cap overall.

These limitations are meant to help the borrower. While these limitations are useful in preventing borrowers from going bankrupt during weak job markets, they also prevent lenders from receiving due benefit from wise investments. For example, if a recipient of an income-contingent loan becomes a multimillionaire from his or her entrepreneurial efforts, the lender receives no similar reward. The lender receives, at most, a maximum return that is measured in dollar amount, not a more-valuable percentage of the borrower’s profit.

Lenders have a reduced incentive to offer income-contingent loans. They know that their returns from less-successful borrowers could be nonexistent but their returns from very successful borrowers could be limited, providing neither the security of a traditional loan nor the opportunity of an investment. But what if something existed that would protect and assist a borrower like an income-contingent loan but provide a lender with the opportunity of a traditional investment?

Midland University created the Human Capital Market to allow investors to purchase shares in the lifetime revenue of university graduates, providing these graduates with lucrative funding from initial public offerings that allow them to repay their student loans, purchase cars and homes, and start off their lives as independent adults without the specter of crushing debt and interest payments. In exchange, investors will receive long-term benefits from motivated, talented, hardworking graduates who will be able to navigate the job market, and their careers, with profit-generating skill. The graduates on our Human Capital Market use their IPOs to enter the adult world on the right foot and investors will see returns for decades to come, allowing everyone to profit.

The incentives to invest in Midland University’s Human Capital Market are plentiful.

First of all, investing in the profitability of individuals has several advantages compared to investing in corporations. Individuals are more flexible and fluid than corporations with established heavy capital and property ownership, allowing them to more easily adjust to market conditions. An individual’s ability to innovate, improvise, and adapt is unprecedented. When a corporation cannot find its way, a motivated individual can. While a large corporation often cannot retool for a new industry, an individual can retrain for a new career, meaning that the rapid evolution of our post-industrial economy makes versatile individuals more advantageous investments than slow-moving corporations."

0.1

His side ached, high up near his armpit, and for a second he could still feel the cold tear of the knife blade as it severed skin and muscle.

He remembered being in cold and dirty water, water that should not have been there, and pushing away a man. A heavy man, tall, his body weighing him down. He sank and his arms floated above his head, feeling foolish for not taking a breath, and felt hands grab his own. He was pulled roughly to the surface, the cold air a double insult after the cold water, and a cordon of men helped grab his arms.

He was pulled ashore and closed his eyes against the cold and the feeling of leaking, oozing blood on his left side. Men were yelling and running, gathering at intervals along the draw. Looking for the other man.

0.2

"Secondly, an individual is often more motivated to succeed than a corporation whose officers receive excessive compensation from their boards. With no ‘golden parachutes’ to carry them to financial safety, individuals must always stay focused on their career success. Dollar for dollar, an individual must be a more zealous economic competitor than a high-ranking corporate officer. Investing in the rank-and-file, rather than the corner office, means investing in a more ambitious, hard-working prospect.

Third, continuing to invest exclusively in established corporations is economically unsustainable. With the decline in real wages and perpetually elevated natural rate of unemployment, corporations have ravaged the American worker in their pursuit of higher stock prices. Investing with the Midland University Human Capital Market helps return the power to the worker. With increased net wealth provided by their IPOs, workers have steadier footing and greater confidence with which to assert their rights and values. No longer will corporations be able to overwork their employees and compromise their safety, which ultimately lowers the quality of American products, in the mindless pursuit of profit. Investing in the worker forces their employers to foster better, more productive leadership and return quality to ‘made in America.’

Finally, investing in an individual creates a symbiotic relationship that profits both the individual and the investor. Investors have an incentive to assist the individuals in whom they invest by using their social capital to explore avenues where these individuals will find the greatest productivity and, therefore, greatest profit. Investors can contact their investees with advice and information about job offers and training options, creating a mutually beneficial relationship. Since there is no obligation on the part of the investee and all contact goes through the Human Capital Market, preventing discomfort or awkwardness, the advice and mentoring is positive rather than oppressive. Ultimately, investors help improve the careers of the investees, bringing greater profits to both parties.

In a macroeconomic sense, the wealth generated by IPOs and subsequent investor mentoring and guidance will boost investee earnings and consumption, bringing about a new economic boom. Forcing corporations to respect the increased independence and value of the worker will further increase investee earnings, allowing this new economic boom to be sustained over the long term. The reduction in outstanding student loans will transfer power from the bankers to the people, forcing lenders to engage in positive reforms that will further improve our nation’s economy.

Go online and check out the unique options available with the Midland University Human Capital Market! Whether you are a potential investee seeking a valuation or a potential investor seeking opportunities, we have a user-friendly site and real-time advisors prepared to assist you. New for the Market are our term investments, allowing investments to run for five, ten, twelve, twenty, thirty, or forty year periods. Or you can stick with the popular, traditional lifetime investment possibilities. Whatever you are looking for, the Human Capital Market staff can help! Go online or call today!"

0.3

He had watched the television from his bed in the hospital while they drew another sample of blood for another radiation test. The news reporter was announcing that the drainage canal had been drained and that the body of a middle-aged man had been found. It was the suspect and he was long deceased, likely having drowned within moments of falling into the water. The camera switched to a feed from Washington, where the president was preparing to award medals of valor, flanked by three former presidents and a smattering of dignitaries.

0.4

The commercial ended and Hank Hummel sank back into the leather recliner. He grabbed a Midland Monthly magazine from the glasstop coffee table in front of him and flipped through the pages absent-mindedly, glancing at articles and images about Midland’s new STITCH hub. There were photos of smiling men in orange vests and hard hats standing in the sun-drenched scrubland, holding shovels and tablet computers. Gotta show that political mix of old-fashioned muscle and high-tech spirit, he thought with a mental sigh.

With a clicking of high heels, an attractive secretary entered the marble lobby and called his name with a practiced smile, indicating that it was his turn to be seen. Setting the magazine back on its stack, which was perfectly edged, he shouldered his bag and stood to follow the secretary. Noticing her expensive outfit, he suddenly felt underdressed in slacks and a polo shirt.

She led him to an office with a stained oak door, knocked politely, and then cracked the door and gestured for him to enter. He smiled at her and went in, opening the door and taking in the sight of a leather, cherry oak, and mahogany lounge of a workspace. Brass fixtures and heavy picture frames and artificial windows with ornate drapes hinted at old money and political power.

A surprisingly young man sat behind the massive desk, working at a computer with a holographic display.

Holy shit, I know this guy.

Professor Hummel, it’s great to have you here! the man said, rising for a greeting. It’s been a long time. I was very excited to hear you would be in.

Hummel faked a smile and made a do I know you? face, hoping to gain some power by pretending he did not remember the man. Unfortunately, he did.

I’m Rob Layton; we graduated from high school together, the man said, still smiling.

Oh, that’s right. Now I remember. How have you been?

Great, great. I was on the east coast until recently, working finance out there. Because I’d worked with Pave and Kickstarter in their early years I got found by a headhunter for HumCap and they asked me to apply for a job. So I did, it worked out, and here I am.

Well, congratulations, man. Glad to see that you made it back to the hometown.

Thanks. And it sounds like you’ve made quite a name for yourself!

Oh, Christ. Not this again…

Things have certainly been hectic, Rob. I’m not gonna lie. But I’ve been taking it easy since then.

Layton smiled and nodded, couth enough not to press the issue. Hummel obligingly approached the desk and shook the man’s outstretched hand, noticing the gold wristwatch peeking out from beneath the tailored cuffs of the suit jacket. He sat in one of the two armchairs in front of the heavy desk while Lawton returned to his keyboard and monitor, typing and swiping his way to the desired file.

Hummel, Hank, right here. I’ve got good news, buddy! Your market valuation is back from analysis, and it looks pretty good.

1

It was the morning of all mornings, perfect in every way. In the shadows it was just cool enough to be crisp and in the sun it was just warm enough to feel the sun’s kiss. He watched his son and grandson up ahead, crunching through the last remnants of the scrubland, their German Shepherd sniffing every cactus, catclaw, and mesquite in sight. Michael, make sure you’re keeping an eye on her, his son called to his own son as he fiddled with his phone, preparing to take more photographs.

He crunched over, feeling his old boots grind the twigs, dry grass, and thorns into the dust. I wonder how long I’ve had these boots? Hope a mesquite thorn can’t get through the sole. Are these shots going to be on the cover, maybe? he asked, watching his son zoom in on a particularly thorny bush.

Maybe. I need some good scrubby photos for contrast. I wish I could find a cactus with a flower, you know? Get some of the grittiness of west Texas along with some of the beauty and promise and contrast. Plus, it’s real artsy and stuff.

He smiled and nodded. You feeling all right? I hear from Mom that you’ve been under stress. From the Human Capital Market and the baby and everything like that.

Putting the camera back in the hip pocket of his jeans, his son ran his fingers through his hair, which was longer and looked in need of a cut. Glancing over toward Michael, who was swinging an old mesquite tree branch at a tumbleweed, he smiled. My market valuation came back good. It’ll buy some breathing room in this economy for sure. I didn’t want to tell you or Mom more about it until I’d crunched all the numbers.

Does Whitney know?

I was going to crunch the numbers before I told her the specifics, too. I told her that it was a good valuation. I’m trying to put her mind at ease with her being with the baby and all.

And how is little Ava?

They talked about the baby for a while, trudging through the remnants of nature that existed on the borders of campus. They talked about the new high chair and bouncy play seat and the antique music box Whitney had found at the downtown boutique, the small one tucked in between the office buildings. Everything’s expensive, his son said. I mean, you want to raise your baby with every opportunity, and it seems like there’s always something else you need to get.

I hear you, son. The future doesn’t seem as secure as it used to. He remembered back, way back, to when his own son was a baby. Christ, the eighties. I wore Dockers, polo shirts, suits to work. I had that Saab. It was a turbo. It was Morning Again in America.

His son walked over to Michael and Samson the German Shepherd, who was now busy investigating some groundhog holes for occupants. Michael thrust his mesquite branch into the hole, apparently hoping to create a vermin shish-kebob. Michael, stop that, his son sighed. Leave the groundhogs alone.

Will Ava even have this little bit of wild scrubland to see? Or will it be developed over?

Michael began chatting with his father about the gifted-and-talented class at school and he watched as the two headed toward the chain-link fence separating the campus from the private airfield to the east, Samson weaving around them like a furry, binding rope. Occasionally, he stopped to pick a thorn from a paw with his teeth, his human obligingly stopping to wait. A large hill, artificially created by some part construction project that require earth-moving, represented the end of the scrubland. Beyond it, the mown fields of campus proper awaited.

Still full of youthful energy, Michael bounded up the scrubby hill, unbothered by weeds and prickly plants. His father agreeably kept quiet and did not call out his usual warnings. Climbing over a pile of rock and crushed cinderblock at the crest of the small hill, Michael announced that a bunch of construction equipment had been placed there.

There’s a bulldozer and some trucks, Dad! the boy yelled. It’s a Caterpillar!

I guess that answers whether this scrubland will be developed over. A good-sized bulldozer will rip it all out in a week.

2

The kid opened the dorm room door with a shocked look on his preppy face. Immediately, he began wiping his sweaty palms on his designer polo, eyes darting back and forth furiously.

Mind if we come in, Andrew? the Hispanic officer in the doorway asked casually. Behind him, two other officers stood with their arms crossed over their chests, like something out of a cheesy movie. Desperately feigning innocence, the college boy shrugged and took a step backward, indicating that the men could come inside. Striding inside, the men began scanning the room.

The walls were adorned with the typical college male accoutrement, ranging from sports posters to a Playboy calendar to some high school mementos. Based on the letterman jacket hung on the loft bed, Andrew was a sophomore who had played football at Lee High, right here in town. So where’d you stash it, Andrew? Closet, right?

S-stash what? Did I do something wrong?

The Hispanic officer, his fancy uniform indicating he was a lieutenant, sighed and smiled. We’ve got surveillance video showing you and your buddies using a net to snatch one of the delivery drones this morning. One of your buddies squealed and said you were the ringleader. He held out a gloved hand to one of the officers standing behind him. The man withdrew a tablet computer from inside his leather police jacket and handed it over.

Swiping right, the lieutenant showed the college kid the video. Impressive use of the net. Any of you boys lasso?

Knowing he was caught, young Andrew began to flush.

We were drunk, I guess, he mumbled, now studying his boat shoes.

And you’re not yet twenty-one, the high-ranking officer said. So that’s more trouble there if you stick to that story. Why don’t you just do us all a favor and tell us the full story? If you accompany us back to the station without making a big deal about it we can put that in your file as ‘eager cooperation.’

Eagerly, the kid nodded. Grab the net and the drone, one of the other cops said, and the kid immediately opened his dorm room closet door and pulled out a heavy-duty net and what resembled a high-quality remote-controlled helicopter, all entangled together. His arms strained, the muscles and cords standing out, indicating the weight of the drone. Despite being an obvious gym rat, young Andrew still could not make carrying the drone-and-net monstrosity appear easy. The larger of the two jacket-wearing cops, twice as wide as the slim college sophomore, grabbed the bulk and grunted in surprise.

It ain’t your Toys R Us ‘mote control helicopter, he said. It looks like one of the rotors is bent, too. The company will want you to pay to fix it, and it ain’t gonna be cheap.

Andrew looked scared. The Hispanic officer opened a leather case on his belt and pulled out a pink pad of tickets. My name is Lt. Hector Rodriguez, MUPD. I’m writing you a ticket for theft and vandalizing university property, since the drones are on campus as part of a campus-corporate partnership. You come with us and give us the story and you might walk away with only this ticket. Don’t play ball and we have to get the Office of Student Responsibility involved. Understand?

Yes, sir.

Good. Let’s go. You got a class this afternoon?

Yes, sir. At three. It’s petroleum engineering.

Rodriguez smiled. You talk fast and we’ll make sure you don’t get a tardy.

3

The Mayor pushed the button for the 50th floor of the Energy Tower and stepped to the side as the bulky university dean, sweating despite the chill of the lobby, clambered in beside him.

I can’t believe this loser is supposed to be what we need for Division I status. I’ve gotta get on the Board about just hiring whatever big-league cast-offs send ‘em an e-mail. I’m tired of playing babysitter to this John Candy.

He faked a smile and looked at the portly administrator. Since we’re heading in to talk with the bigwigs, do we have anything new from campus?

The dean nodded nervously. Campus PD found one of the kids from the videos who are capturing the drones. Apparently it’s some sort of game, like catching them in a net when they land to drop off their deliveries. It’s a bunch of spoiled rich frat boys using heavy-duty nets to snare up the drone rotors. Lieutenant Rodriguez leaned on one of the punks and he spilled everything.

That’s something, at least. Those corporate guys have been pissed as hell, threatening to move their beta testing elsewhere. I’ve been leaning on the state to get that STITCH hub finished; once that’s done we’ll have these companies eating out of the palm of our hands. Until then, we’ve got to suck up and deal with this bullshit.

The elevator dinged and the shiny doors hissed open, revealing an ornate lobby. Soft piano music played. Stepping out of the elevator, the Mayor checked the floor’s flatscreen and discovered that the corporate team was already in the conference room. You have your tablet? he asked the dean, who nodded and took a deep, blubbery breath.

Striding across the lobby to the oak doors of the conference room, the Mayor opened the door and entered the room, leaving the dean to grab at the door as it began swinging closed. Inside the room, a team of well-dressed men and women, all Caucasian and wearing conservative colors, were standing behind the leather office chairs that were arrayed around the long table. You made it! a cheery blonde said, her curves and plunging neckline hardly befitting a corporate officer.

Indeed we did! Traffic, you know, the Mayor jested, allowing his political charm to pour forth. But you guys know all about that. He swirled his index finger around in a circle while moving his hand straight forward overhead, making helicopter sounds with his mouth. The corporate team laughed politely.

Bunch of phonies.

An older woman stepped forward, a tan pantsuit draped elegantly from her tall, thin frame. I’m Barbara Cortwood, vice president of operations, she said, giving both the Mayor and the dean a firm handshake. Thank you for meeting with us. Please, have a seat. Two chairs were vacant and, as the corporate team took their seats, the Mayor and the dean maneuvered into their own chairs as well.

Cortwood remained standing and began stalking the conference room like a formally-dressed predator, eyes zeroing in on her prey. I’ll cut straight to the point. We don’t like the way Midland University has been handling our drone beta program. We’ve been losing drones to frat boys who think it’s fun to try to capture them, we’re not receiving data promptly from the programs and professors we’ve allowed to piggyback on our project, and we’re not getting the publicity we were promised. Honestly, we’re thinking about moving shop.

Time to bring out the big guns.

The Mayor cleared his throat and nodded. I understand that things haven’t been perfect, Ms. Cortwood, but I don’t think you’re going to find a better deal on another campus. We’ve got growing pains, it’s true, but I certainly disagree with you on the publicity front.

The vice president of operations scowled. We’re not seeing the articles you were supposed to seed in regional newspapers about us. You promised us favorable reviews and press from the university newspaper and we were told that those articles would be picked up by everyone, including Hearst. We’ve just seen a few local stories. A big part of our marketing is authentic-looking local reviews and blogs, grassroots and that stuff, that you said you could provide.

The college dean, sweating profusely, tried to interject but was waved off by the Mayor, who was by now in full politician mode. The man’s past experience as a state prosecutor was readily apparent as he leaned back in his chair and gave a wolfish smile.

Maybe we’ve been a little behind on the fake blog posts and student reviews and that stuff, but we’re pretty swamped with a much bigger thing that should be making your shareholders very happy: Our Human Capital Market. In case you haven’t heard, it’s gotten our campus nationwide press every week for the past two years. And we’re still the largest human capital market out there, so moving elsewhere would be a financial downsize for you.

A mustachioed man in a dark grey suit shook his head and insisted that the Human Capital Market was unrelated to the corporation trying to get its drone program ready to go public.

Look, our graduates are leaving campus with more disposable income than from any other college in America. And what do they remember? Your drones delivering stuff. These new rich kids are gonna remember those things and want those drone services. But they’re only going to want them if they have a good reputation, not one about you guys getting all nitpicky. Investors are making our graduates rich and 22-year-olds are willing to buy goods and services that they think are fun, not ones they remember as being saddled with a bunch of corporate bull from back when they were in college.

The corporate team looked around the conference table at one another, their looks of cautious understanding mirrored gently in the polished tabletop.

In fact, the Mayor continued, "it would be in your best interest to bring in more beta stuff you want our graduates to buy. Young people from all over the country will be taking their lead from our graduates, who are the rich, hip kids because of their IPOs. Twentysomethings in LA, Chicago, New York, all those places, are envying our graduates, who have no student debt and can actually afford to buy things."

Cortwood’s brow furrowed, understanding the Mayor’s logic but refusing to concede easily. Perhaps, but how many other universities are setting up their own human capital markets? In mere months you could be old news, especially since it will be the Division I schools that will be creating the markets. Investors will go to them. Don’t think that you can push us around. We’ll still be around, and with billions in cash, when UT, A & M, Tech, and everyone else open their markets. And those schools have been asking about our drones, believe you me.

Fell right into my trap, bitch.

So, how close to opening their own human capital markets do you think these universities really are, Ms. Cortwood? the Mayor asked with a cocked eyebrow, grinning like the cat who ate the canary.

4

Hank Hummel met his old grad school buddy in the parking lot of the Mexican restaurant, the gentle euphoria of two margaritas masking the surprisingly warm spring evening that threatened to begin wringing sweat from his underarms. Good to see you, AJ, he said, giving the jovial sociology professor a quick hug. It’s been too long, man!

AJ’s wife, Carrie, climbed out of the Honda with a small gift-wrapped box, smiling