Drive Growth: Education Better Education Improves General Labor Quality and Enables Specialization For More Efficiency (@)) www.kpcb.com USA Inc. | What Might a Turnaround Expert Consider? 377 Education = High Long-Term ROI* Investment Each $1 of Government Spending Could Generate Up to $3 of Incremental Tax Return USA Inc. Net Present Value (NPV) for an Individual** Obtaining Secondary / Higher Education, 2005 NPV = $100,119 > $140,000 ------------------------------------ ROL= 299% oo £ __ £ SS 1201000) mm se - sos mee me see = re et ie oe — se ee ie a ae et -------- # Unemployment Effect g 5 BOO OG, em mec — cre sce ms cae — ers sas ers oe oe a se fs ear — ee 5 8 $80,000 ---..-- NPV=$32,257 ....-- |_._..._ | Social Insurance Tax £i ROI = 109% Revenues so $60,000 -- - s/s ——tC—tC—ti‘“‘i‘“‘i‘ CCC p= ~~ oD vr a | = Income Tax Revenues 26 $40,000 -------- rai es ie fe is wae tts — se 2 § 2 $20,000 -------- pS Ses ones no sas Soe p= 3 8 = Public Foregone Tax a) $0 Revenues 2 2 -$20,000 -------- jj SS SS ee ees as iain = ae = Public Direct Cost ou —SESEEEEEE— Secondary Education Higher Education Note: * ROI (return on investment) calculated as NPV of future incremental tax revenues divided by cost for government to support an individual for education. **Limited to male samples, female samples tend to have a lower public NPV. Source: OECD. (@)E) www.kpcb.com USA Inc. | What Might a Turnaround Expert Consider? 378 HOUSE_OVERSIGHT_021030