Innovation crisis in the West

Discussion in 'General Business Forum' started by Paul172, Jan 9, 2019.

  1. The Byre

    The Byre UKBF Ace Free Member

    8,522 3,296
    In order to explain the Austerity Delusion, I actually calculated the costs and benefits for the government (and not taking wider social costs into account) of closing a school that costs £5m p.a. to run.

    It was about -£3m in the first year (i.e. they save £5m, but it costs £8m to do) and -£1m to -£2m after that.

    If we then add social costs of increased crime, drugs, lack of earnings for former pupils, it really mounts up alarmingly. Now think of all the youth clubs, libraries, care centres etc. etc. that have been closed and you begin to realise why government debt is proving impossible to reduce.
     
    Posted: Jan 11, 2019 By: The Byre Member since: Aug 13, 2013
    #21
  2. Noah

    Noah UKBF Ace Free Member

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    If you are happy to share, I would be interested in seeing that.
     
    Posted: Jan 11, 2019 By: Noah Member since: Sep 1, 2009
    #22
  3. The Byre

    The Byre UKBF Ace Free Member

    8,522 3,296
    I would love to give you that calculation, but it was done ad hoc and on bits of paper to prove a point.

    But you can rough it out for yourself, taking c.a. 100 staff, at ave. teachers' pay, add redundancy payments, loss of taxes, payroll taxes, NI etc. on that pay, unemployment payments, loss of spending power, tax take on that loss of about 36%, about one-in-three parents having to stay home, so loss of ave. income taxes etc., etc. on that loss, loss of spending power by parents and tax take on that loss. Loss of tax take on auxiliary services such as meals, busses, utilities, IT services etc. and subsequent loss of spending power on those reductions.

    It is all those knock-on reductions and the subsequent reductions in tax-take that causes such things to have often (but not always - that depends on the type of service being cut) have a disproportionate effect on government revenues.
     
    Posted: Jan 11, 2019 By: The Byre Member since: Aug 13, 2013
    #23
  4. Mr D

    Mr D UKBF Legend Free Member

    14,288 1,557
    Teachers can and often do find other jobs. Its not a question of close a school and the teachers never work again.
    Nor do most kids have to be homeschooled thereafter, so one in three parents not having to stay at home any more than they were already.
    Loss of spending power by parents? Their jobs haven't disappeared have they? If a job still exists and someone leaves, someone else takes it and is no longer employed elsewhere / unemployed.

    By all means include a percentage of teachers not taking further jobs - older ones may wish to take early retirement or not want to travel so much and look at other careers with similar holiday time. But won't be all teachers.
     
    Posted: Jan 11, 2019 By: Mr D Member since: Feb 12, 2017
    #24
  5. Paul172

    Paul172 UKBF Newcomer Free Member

    11 1
    It's hard to do that. I can't remember most of the information given without practical examples. Now I'm studying just to pass exams so I have more time for personal projects. I made some projects for business and other specialists, not one asked my diploma. My university studies didn't help me with these projects, I learned everything myself. People sometimes ask to make extremely rare things, that's why learning by making projects will always be a better choice.
     
    Posted: Jan 11, 2019 By: Paul172 Member since: Jan 3, 2019
    #25
  6. Mr D

    Mr D UKBF Legend Free Member

    14,288 1,557
    Don't miss out on the access to the books in the uni (even outside your speciality) and the brains of your lecturers.

    Back when I were a student we tended to write during lectures - making notes ourselves based on what was said and what was shown. Plus asking questions as we went along to clarify understanding or where a point was relatively unknown.
     
    Posted: Jan 11, 2019 By: Mr D Member since: Feb 12, 2017
    #26