Chapter 11
Nature of Net Benefit
Introduction
Net Benefit Rule
Changeover Costs and Benefits
Operating Costs and Benefits
Illustration
Introduction
[The leader of the Opposition] waits in the wings with a host of zany plans
to sail the ship of state intervention
into unchartered waters, as well as
returning to the treacherous shoals of the past.
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Reasoning processes used in taking purposive action are labelled policy.
Policy is based on the net benefit rule. In simple form, policy entails seeking
the best option.
This consists of
the outcome that yields the highest net
benefit.
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While the more usual use of net benefit confines it to benefits and
costs that can be expressed in money’s worth, this analysis includes any type
of benefits and costs. All relevant costs and benefits must be counted,
including those that are economic, financial, physical, emotional, spiritual and
social.
This chapter explains the concept of net benefit. To do this it performs three
tasks:
(1)
It explains the net benefit rule in detail.
(2)
It explains the two components of the net benefit rule. These consist of
operating costs and benefit and changeover costs and benefits.
(3)
It concludes with an illustration.
Net Benefit Rule
You’re simply the best, better than all the rest.
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Introduction
A legislature about to make a statute and a court that has to interpret a law is
faced with options. The function of the net benefit rule is to provide a means
whereby the legislature or court can best choose between these options.
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Alan Anderson “Get ready for a bidding contest” The Sydney Morning Herald
16 August 2004
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Faulkes (1985), See also Sunstein (1994) and Mitchell (1990).
305
Tina Turner Simply the Best
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