High Speed 351 Rail Network

The overt nature of an economic variable from which economic critics select desired terms to support their case is the mother of ambiguity. This knowledge has been used by many to wrap cases, attack dire scenarios or even persuade the consumers into reasoning in a particular way. This is evidenced in economic statistics as argued by Michael (October 2013). A recent instance is the case of HS2, a high speed 351 rail network connecting London to Manchester and Leads via Birmingham. The ministry's statistics project that the rail can churn £15 billion a year. John believes that, it is this projected yield that is in question. Many view it as benefits approved with incomplete consideration of all factors involved, however, the authorities have their position and continue to unleash explanations that honor the project (September 2013). A look into strategy details and economic variables in the HS2 case, reveals some loopholes criticizing the nature of the proposed investment. John and Michael’s argument plays great role in determining the fate of the rail, as a result, they will be used as reference in this critique paper.

The Commons Treasury select committee announced that they are not moved by the assumptions made in the HS2 appraisal. The cost-benefit analysis on the project was found to be having significant drawbacks. Essential elements concerning the building cost and the rate of return pertaining to the project were neglected. The minister’s act to seek aid from a professional accounting body was conceived by many as a way of justifying the figures for an unfeasible project. Tax Payers alliance believed that KPMG, the hired accounting firm, offered their services at a price of £24000 and in turn made critical assumptions that would render their judgment unrealistic. Their official statement stated that they were touched with the benefits and not the cost. According to Michael, with little consideration of the negative economic effect of the project, a credible...