Saturday, January 19, 2013

BBC Madness

If you have read my blog before you will be aware of my concerns about the biased BBC and the iniquitous TV Tax - also called the license fee.

However, even the most (blinkered) ardent supporter of the BBC must have been taken aback and stared with incredulity at the claim that in the past two years the BBC contributed more than £8 billion to the UK economy!

How did it do this?  Well it is called the 'multiplier effect'  This says that for every pound that is spent it generates economic activity of twice it's value.  In the case of the BBC the premise is that when it buys a TV camera for example, the money it pays, goes to generate salaries for the makers of the camera and their workers etc., and these then buy food which generates economic impact for the makers and transporters of food, etc.  and on and on it goes.

This is fatuous nonsense and the fuzziest of fuzzy maths.  If we take the BBC's view to it's logical extension, all global activity can be traced back to the spending that the 'beeb' is making.

Is it any wonder that the BBC push socialist policies, which posit that spending can occur without  actually having the money to pay for them?  According to BBC economic theory, all it takes is £1 and then you double-up and double-up and double-up until that fancy new BBC News Centre or Newscaster's salary has been paid for.  You can do the same with hospitals!  Need to finance a Trans-Gender outreach worker? - all you need is to spend a pound and in no time the funding is there.

In case you think I am making this up.

The report said: "The effect of initial BBC spending is 'multiplied' as it ripples through the economy from region to region and sector to sector (and to the employees of those sectors). This is known as the 'multiplier effect'."
The BBC's chief economic and policy adviser Najma Rajah explained: "The basic premise is that when the BBC spends a pound, the impact of that pound is 'multiplied' as that pound spent by the BBC creates value elsewhere in the economy.
"So, for example, if the BBC were to buy a camera from a supplier in Manchester, the camera supplier would receive some money in return for the camera.
"The camera company would then use the income generated from the sale of the camera to pay their suppliers for the components that went into the camera and to also pay their employees and so on."
Rajah added: "A really good example of how this multiplier effect works is when the BBC commissions a programme that is made by an independent television production.
"The programme might be filmed in Scotland using local runners, electricians, make-up artists etc. who are paid and then will spend their wages in Scotland to the benefit of the Scottish economy."
 So there you have it (are you paying attention Mr Salmond?) another series or two of Monarch of the Glen and a couple from Rab C Nesbitt and Scotland's economic future is secure - maybe Salmond is right - they don't need the oil industry!

 Now ardent supporter, you might ask yourself why the BBC needs to have it's own chief economic and policy adviser?  Why doesn't it spend less on justifying it's own existence and maybe more on original programming?

Repeal the TV Tax now!

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