Friday, August 13, 2010

There's only one really important concept in economics [Warning: Broadband post]

It's opportunity cost.

You would be amazed at how many people don't get it.

Christopher Joye is someone who does.

Here are his twitter posts today:

I wonder whether Australia would be much better served by spending $43 billion on public transport systems
about 5 hours ago via Twitter for BlackBerry®

Okay let's spend $43 bn on public transport + throw in free wi-fi. I'm guessing efficiency gains wld be greater (while mkt supplies b-band).
about 5 hours ago via Twitter for BlackBerry®

$43bn wld buy ~230km of new metro rail track across Australia (using Parra-Epping price); equivalent to 68 times size Kings X to Bondi line
about 4 hours ago via web

Tonight ~105k people are homeless. $43 billion could completely eradicate homelessness. We could build 107,500 new homes worth $400k each.
about 3 hours ago via web

Perspective: give homes to 105k homeless or build 230km of new city rail + get 10mb/s. Who needs 2 d/load 100mb/s anyway? Youtube is fine
about 2 hours ago via Twitter for BlackBerry®

Rather than NBN we could solve health crisis with 43x new 340 bed hospitals-- bringing 14,620 beds online--based on ~$1bn cost of Melb's RCH
about 2 hours ago via web

Do we really need a taxpayer funded $43bn upgrade to Skype, iTunes, Facebook + YouTube? Kids will still go to school, people travel to work.
about 1 hour ago via Twitter for BlackBerry®

NBN's doing my head in. Simply GFC-induced grandiloquence. Too-smart-by-half kids in Rudd/Swan's office thinking let’s build $43bn lolly pop
about 1 hour ago via web

Where's the Treasury analysis or PC report showing us that this is the best use of $43 billion? There isn't one. We're all gullible fools
4 minutes ago via Twitter for BlackBerry®

@joshgans sure, compare it to the revenue/benefits you get from public transport, hospitals etc. The PROBLEM is NOBODY has done the analysis
6 minutes ago via Twitter for BlackBerry® in reply to joshgans

We don't even know if $43bn is the right number. Why not $10-20bn. Who made these decisions? What independent analysis was carried out?
2 minutes ago via Twitter for BlackBerry®

I agree completely.

What you think about the NBN says an awful lot about the way you think.

Related Posts

. Whoops, sorry. Fibre-to-the-Home should be a top national priority

. Gans is right - the NBN won't solve much

. Revealed: Labor's $30 billion broadband furphy

. Broadband: Labor gets taken for a ride