The annual January 2 Test match at the Sydney Cricket Ground finished recently, leaving me with nothing to do except borrow a cricket video from the library. It was the final match of a 3-game series against South Africa, and Australia won it to take the series 2-0 (the first game was a draw). Why was cricket (finally) the winner?
After four days of dismal sport marred by boring South African batting, poor weather, and rotten umpiring, the fifth day produced great excitement as Graeme Smith, the South African captain, declared his innings with a slender lead of 286 in the hope of bowling Australia out. History was against Australia making the runs, but they broke a 107-year-old ground record to do just that. Smith took a big risk to try and win the game, and it didn't pay off. He was desparate to level the series 1-1, but ended up losing it 2-0. His bravery and commitment to provide an entertaining day's play, whatever the result, has probably won him many fans from a previously lukewarm Australian public. South Africa certainly emerged as a brave and worthy cricket opponent. The return series – three Tests in South Africa commencing in March – promises excitement.
Despite Australia winning the match on paper, they can't be said to have truly won it. South Africa had a commanding lead at all stages until Smith forced the issue. Australia took advantage of the opportunity Smith provided; they did not create their own opportunity. South Africa could easily have engineered a draw and kept the series at 1-0, but chose the more sporting option of chasing a win and entertaining the crowds. Therefore, I declare cricket the winner.
And an unlikely winner it was, after poor weather stealing some of the time available, and poor umpiring having far too much impact on the game. More incorrect decisions went against South Africa than against Australia; this really risked undermining the game and its result. Fortunately, South Africa retained the dominant position they deserved until they declared their hand.
Most fortunately of all, Australia has somebody worth competing against in Test cricket again. England aside, the other handful of Test-playing nations have proven inadequate in recent years. There's nothing worse than the seeing beautiful five-day game be regularly reduced to a three-day demolition (the occasional smashing of the Poms is OK). The world needs a sport where two teams are tested, individually and collectively, over an extended period. I can't see any other sports fitting that description.
Monday, January 09, 2006
Wednesday, January 04, 2006
Private School Fees and Inflation
Another year, another hearty rise in private school fees (to a maximum of $22,000 p.a.) and a chorus of complaint as it is observed that the price hikes exceed inflation. Ditto health funds. A classic example of economic ignorance.
Inflation is the measure of average price increases, not a driver of price increases. Do you expect to pay 2% more now for the same computer you bought last year? No. All sorts of things drive prices up and down. In the case of school fees, it's almost certainly a matter of supply and demand. Increasing teachers' salaries (thank goodness) come into it, as do expanding executive staff, and of course new facilities, but basically, it's a matter of "we can get away with it".
Inflation is measured by tracking the price of "basket of goods" including basic foods and other necessities, but not health funds or school fees. Like many other things in economics, it sounds like a really crappy measure – more a thumb-suck – but it gets burrowed into people's heads as some kind of powerful force. I'm not saying it's not important; your savings will certainly be eaten up by the rising cost of living if you're not careful. But it's good to know what it actually is.
Further on the matter of private school fees, I read this week that teachers' salaries typically account for around 60% of such schools' expenditure, though the figure varies widely. This was a pleasant surprise. To the best of my knowledge, private school teachers are typically paid only slightly better than public school teachers. This means that the cash flowing into private schools is mostly going to a good cause, from a parent's point of view. The fine facilities on display at many private schools give the false impression of easy money. In my limited experience, such expenditure is enabled only by long-term money management and energetic fundraising.
Inflation is the measure of average price increases, not a driver of price increases. Do you expect to pay 2% more now for the same computer you bought last year? No. All sorts of things drive prices up and down. In the case of school fees, it's almost certainly a matter of supply and demand. Increasing teachers' salaries (thank goodness) come into it, as do expanding executive staff, and of course new facilities, but basically, it's a matter of "we can get away with it".
Inflation is measured by tracking the price of "basket of goods" including basic foods and other necessities, but not health funds or school fees. Like many other things in economics, it sounds like a really crappy measure – more a thumb-suck – but it gets burrowed into people's heads as some kind of powerful force. I'm not saying it's not important; your savings will certainly be eaten up by the rising cost of living if you're not careful. But it's good to know what it actually is.
Further on the matter of private school fees, I read this week that teachers' salaries typically account for around 60% of such schools' expenditure, though the figure varies widely. This was a pleasant surprise. To the best of my knowledge, private school teachers are typically paid only slightly better than public school teachers. This means that the cash flowing into private schools is mostly going to a good cause, from a parent's point of view. The fine facilities on display at many private schools give the false impression of easy money. In my limited experience, such expenditure is enabled only by long-term money management and energetic fundraising.
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