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The business case for... The business case for...
(2 days later)
Instead of seeking to justify policies on economic grounds, why don't politicians make "moral cases", or even "romantic cases" for their arguments, asks Michael Blastland in his regular column.Instead of seeking to justify policies on economic grounds, why don't politicians make "moral cases", or even "romantic cases" for their arguments, asks Michael Blastland in his regular column.
What we need are huge dormitories, child factories, basically, so that the economies of scale in child production can be fully realised. Feeding and cleaning of the children could be performed in shifts by full-time staff, probably low-paid migrant workers, as would discipline with the use of a single naughty step 50ft wide, monitored by CCTV.What we need are huge dormitories, child factories, basically, so that the economies of scale in child production can be fully realised. Feeding and cleaning of the children could be performed in shifts by full-time staff, probably low-paid migrant workers, as would discipline with the use of a single naughty step 50ft wide, monitored by CCTV.
An observation tower here and there would mean huge savings in the cost of supervision. And fewer toys would be required because they could be easily circulated.An observation tower here and there would mean huge savings in the cost of supervision. And fewer toys would be required because they could be easily circulated.
All told, the business case for streamlining the early years care of children is overwhelming. In fact, I have calculated potential savings to the nation of £43bn a year.All told, the business case for streamlining the early years care of children is overwhelming. In fact, I have calculated potential savings to the nation of £43bn a year.
'And this section explains your contract of employment''And this section explains your contract of employment'
"The business case for…" like "the economic case for…" is one of those phrases that seems to ooze from every nook and cranny of argument these days. This begins rationally enough. Counting the cost of what you want to do is often sensible, and also - sometimes surprisingly - moral: saving money might mean you can do more of the good things."The business case for…" like "the economic case for…" is one of those phrases that seems to ooze from every nook and cranny of argument these days. This begins rationally enough. Counting the cost of what you want to do is often sensible, and also - sometimes surprisingly - moral: saving money might mean you can do more of the good things.
But is it also possible to get carried away? The interesting question is why people would. Why the dominance of the business case rather than any other, particularly in those areas where this craze seems biggest, in social policy. Has politics lost confidence in other forms of argument? "Never mind that it's the right thing to do, does it, or can it be made to appear that it saves cash?"But is it also possible to get carried away? The interesting question is why people would. Why the dominance of the business case rather than any other, particularly in those areas where this craze seems biggest, in social policy. Has politics lost confidence in other forms of argument? "Never mind that it's the right thing to do, does it, or can it be made to appear that it saves cash?"
Some recent examples:Some recent examples:
  • the economic case against divorce,
  • the business case for flexible working,
  • the cost-to-the-NHS case against smoking
  • the economic case against divorce,
  • the business case for flexible working,
  • the cost-to-the-NHS case against smoking
All of these are suspect, by which I mean that the business case might - it's often hard to tell - actually be the opposite of that claimed.All of these are suspect, by which I mean that the business case might - it's often hard to tell - actually be the opposite of that claimed.
The economics of divorce - the costs to the nation of broken homes etc - were recently offered as a good reason for encouraging couples to stay together. Damaged-children, the extra crime they might commit, the cost of benefits and so on, was reckoned to burden every taxpayer by between £680 and £820 a year. The economics of divorce - the costs to the nation of broken homes etc - were recently offered as a good reason for encouraging couples to stay together. Damaged children, the extra crime they might commit, the cost of benefits and so on, was reckoned to burden every taxpayer by between £680 and £820 a year.
But what if that calculation is wrong and family breakdown in some way profitable? Does that mean you junk your support for marriage? Counting these costs is an extremely imprecise exercise subject overwhelmingly to assumptions and decisions about what to include in the calculation.But what if that calculation is wrong and family breakdown in some way profitable? Does that mean you junk your support for marriage? Counting these costs is an extremely imprecise exercise subject overwhelmingly to assumptions and decisions about what to include in the calculation.
Divorce economicsDivorce economics
There might, for example, be substantial economic additions to GDP from separation, perhaps from a tendency for more people to go out to work to support an increased number of households. Is that in the calculation?There might, for example, be substantial economic additions to GDP from separation, perhaps from a tendency for more people to go out to work to support an increased number of households. Is that in the calculation?
So does the business case work out, perversely, in favour of family break-down? The question, perhaps, is whether we should care about the business or economic case on divorce. Maybe we should find some better arguments than money to describe the value of marriage.So does the business case work out, perversely, in favour of family break-down? The question, perhaps, is whether we should care about the business or economic case on divorce. Maybe we should find some better arguments than money to describe the value of marriage.
A net contributor in GDP termsA net contributor in GDP terms
The same goes for smoking, which to avoid confusion is something I have to point out that I am happy to see less of. Treating smokers costs the NHS in England £2.7bn a year, compared with £1.7bn a decade ago, it was said recently.The same goes for smoking, which to avoid confusion is something I have to point out that I am happy to see less of. Treating smokers costs the NHS in England £2.7bn a year, compared with £1.7bn a decade ago, it was said recently.
Except that there's strong evidence that the best financial value to the nation is if smokers really go for it, feed the Inland Revenue's coffers with excise duty, get lung cancer and die quickly at 65 before they cost us a packet in social care in old age.Except that there's strong evidence that the best financial value to the nation is if smokers really go for it, feed the Inland Revenue's coffers with excise duty, get lung cancer and die quickly at 65 before they cost us a packet in social care in old age.
Does that mean we should encourage smoking? Hardly. But it might mean we should get another argument, for example that a smoking habit can be smelly and dirty, that other people don't like it, that it's about the worst thing you can do for your health short of running under a bus, and that maybe other people who love you care about you not killing yourself early and you should think about their interests too.Does that mean we should encourage smoking? Hardly. But it might mean we should get another argument, for example that a smoking habit can be smelly and dirty, that other people don't like it, that it's about the worst thing you can do for your health short of running under a bus, and that maybe other people who love you care about you not killing yourself early and you should think about their interests too.
Maybe you'll find none of those persuasive, but maybe health is also a value that sometimes has nothing to do with money.Maybe you'll find none of those persuasive, but maybe health is also a value that sometimes has nothing to do with money.
The business case for flexible working is uncertain, though this hasn't stopped people making it. It too rests on assumptions and guesswork and can easily be tilted the other way. Perhaps the question is whether the case for flexible working is not that it's necessarily good for the business bottom-line but that it's good for people's lives. These might or might not be the same thing.The business case for flexible working is uncertain, though this hasn't stopped people making it. It too rests on assumptions and guesswork and can easily be tilted the other way. Perhaps the question is whether the case for flexible working is not that it's necessarily good for the business bottom-line but that it's good for people's lives. These might or might not be the same thing.
Here speaks someone who uses a lot of numbers: sometimes, you can have too many.Here speaks someone who uses a lot of numbers: sometimes, you can have too many.


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