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Children who do not graduate WILL still get an intelligence boost however.
Graduates will get an extra bonus depending on the work mode. Ie.) If set to Spelling Bee, graduates will get extra intelligence on top of intelligence accrued from time spent in school.
My own strategy is to connect metros to Grade school "farms" somewhere far away, I tend to build 12-20 grade schools in a row to educate as many children as possible.
Nonsense, the smartest of Tropicans will always vote for El Presidente! They will form the glorious bulk of capitalists and intellectuals!
The dumbest of Tropicans will be the religious, communist and dirty unwashed environmentalists - who will be in labour camps anyway.
Of course, because they are smart enough to know what happens if they DON'T vote for El Presidente...
Long term investments like Grade School and Academy of Science are for when you've already got a cash flow and a budget surplus. Otherwise you've just harmed your econmy in the short, mid and long term by not investing in a cash chuner like a mine or 2x farms set on cash crop, which are both cheaper than 1x grade school, and that's not even including teacher hiring costs.
I still think that the cascading effect of improved intelligence early on is worth a year of bread and water. These children will be in the workforce for another 40 to 50 years after gradution. This is the only opportunity to increase their effectiveness in any and all professions for the term of their lives. The extra time it takes to train a stupid worker to full competence is far greater per worker than the whole cost of the grade school they attended. I don't consider elementry to be a luxury.