Monday, August 11, 2014

Investment decisions: industry or education?

Education and Economic Growth, by Philip Stevens and Martin Weale, Education and Economic Growth, Philip Stevens and Martin Weale, National Institute of Economic and Social Research, London, England.
“There are two very basic reasons for expecting to find some link between education and economic growth. First of all at the most general level it is intuitively plausible that living standards have risen so much over the last millennium and in particular since 1800 because of education.

“Progress of the sort enjoyed in Europe was not observed in the illiterate societies that have gradually merged into the world economy over the last two hundred years. To the most casual observer it must seem that there is a link between scientific advance and the way in which education has facilitated the development of knowledge.

“Of course the [Marie] and the [Isaac] Newtons of this world are few and far between. But people with only very limited education often find it difficult to function at all in advanced societies. Education is needed for people to benefit from scientific advance as well as to contribute to it.

“Secondly, at a more specific level, a wide range of econometric studies indicates that the incomes individuals can command depend on their level of education. If people with education earn more than those without, shouldn’t the same be true of countries? If not the rate of change of output per hour worked, at least the level of output per hour worked in a country, ought to depend on the educational attainment of the population.

“If spending on education delivers returns of some sort, in much the same way as spending on fixed capital, then it is sensible to talk of investing in human capital, as the counterpart to investing in fixed capital. The process of education can be analysed as an investment decision…”
The BC Government under Christy Clark has demonstrated an urgent desire to facilitate investments in tangible assets: open pit mines, tailings ponds, highways, bridges, German and Polish ferries, port facilities in the Fraser estuary, container storage yards on farmlands, $600 million public power lines to serve private mining companies in the northwest, LNG plants to ensure the billions we pay in carbon tax have no affect on climate change, etc.

However, Liberals are reluctant to invest in the most valuable resource available in British Columbia: human capital.

John Green is author of The Fault In Our Stars

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  1. With a son just graduating from school with a major in "basket weaving" and a son entering grade 7, where the teachers, despite the ministry and the Liberal school boards efforts to the contrary, try to give the kids an education, all I can say is that BC's education system is collapsing into a glorified babysitting service.

    Our schools are not educating children, they are pandering to politicians wishes to dumb down education.

    By starving the schools of cash, means only the elites and the wealthy will survive the system and with plenty of bucks from parents at the ready, enter post secondary education to get a real education. Most kids by grade 12 see the education farce for what it is an drift off in a drug induced haze for the rest of their lives, with the odd one going postal every once in a while.

    This education crisis (and that what it is) will fuel major discontent and riots like the last Stanley Cup riot in Vancouver is just a harbinger of things to come.

    Evil days, brought to you by evil politicians.

  2. Concrete before colleges
    Strike before students
    Site c for cracking- fracking
    7 billion litres a year now - 35 billion litres of fresh BC water a year soon.?

    1. Clickable link

      Is LNG fracturing worth its weight in water?

      Read also:

      What the Site C Dam is really for: an explosion of new fracking wells

      Site C - The BC Liberal Trifecta

      Mega-project contracts for friends in construction plus power for new LNG friends, plus water for gas producers.

      What marvelous profit opportunities. The ROI for those who own a political party can be very high.


  3. Words of U.S. Senator for Massachusetts Elizabeth Warren:

    I hear all this, you know, well, this is class warfare, this is whatev…. No. There is nobody in this country who got rich on his own. Nobody. You built a factory out there? Good for you. But I wanna be clear. You moved your goods to market on the roads the rest of us paid for. You hired workers the rest of us paid to educate. You were safe in your factory because of police forces and fire forces that the rest of us paid for…. You built a factory and it turned into something terrific or a great idea, God bless. Keep a big hunk of it. But part of the underlying social contract is you take a hunk of that and pay forward for the next kid who comes along.




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