…correlates with a one hundred trillion dollar net present value return on investment. Or so says Rick Hanushek and Ludger Wossemann, of the OECD Programme for International Student Assessment.
For reference, current US PISA = 474, current Finnish PISA = 546
At any point in time, attention to economic policies that deal with current demand conditions and with business cycles always seems to take priority. Perhaps this has never been as true as in 2009, when the most obvious focus of attention was the worldwide recession. Without minimising the need to deal with current unemployment conditions, the message of this analysis is that considering issues of longer-run economic growth may be more important for the welfare of nations. Nobel Laureate Robert Lucas, in his presidential address to the American Economic Association, concluded that “Taking performance in the United States over the past 50 years as a benchmark, the potential for welfare gains from better longrun, supply-side policies exceeds by far the potential from further improvements in short-run demand management” (Lucas, 2003).
The study is interesting throughout. I have to admit that I am patently unfamiliar with the methods used by the PISA, itself…