Rail renationalisation- do you support it?

[LateThanNever]

Two words: hyper inflation. The 5 billion on the GWML electrification would barely be able to afford a loaf of bread if we just kept creating money.

That's why we have to have tax - to prevent inflation. But we've proved that creating £435 BILLION for the banks and the City doesn't create public inflation so why are you worried?

 

[JamesT]

That's why we have to have tax - to prevent inflation. But we've proved that creating £435 BILLION for the banks and the City doesn't create public inflation so why are you worried?

We have interest rates to prevent inflation, making saving your money more attractive than spending it. Though I'm not sure you can point at recent events to definitively say creating money doesn't create inflation. Articles such as https://www.theregister.co.uk/2015/06/07/so_why_didnt_quantitative_easing_produce_huge_inflation/ argue it did create inflation, just that offset the massive deflationary pressure we were already under.

 

[158756]

Interesting to see that Andy McDonald MP clarified (parts of) Labour's view on renationalisation this morning and argued "for the government to interfere less in the railway, not more." and that "would investigate "better solutions" for rolling stock procurement & confirms that bringing ROSCOs into public ownership would not be a priority - but not ruled out over longer term."

It is nice to be able to debate facts rather than speculation.

It'd be useful

Interesting to see that Andy McDonald MP clarified (parts of) Labour's view on renationalisation this morning and argued "for the government to interfere less in the railway, not more." and that "would investigate "better solutions" for rolling stock procurement & confirms that bringing ROSCOs into public ownership would not be a priority - but not ruled out over longer term."

It is nice to be able to debate facts rather than speculation.

Would he really interfere win the railways less if elections came round and the 'experienced railwaymen '/business studies graduates in charge said replacing Pacers is a waste of money and HS3/NPR/whatever needs to be abandoned in favour of another Crossrail? (Because Pacer replacement and the Northern Powerhouse, whatever comes of it, are both politically driven.)

I'm surprised he isn't committing to at least not buy future trains through a ROSCO. Buying existing trains off them might be pointless but if you believe privatisation has unnecessarily increased costs the ROSCOs are top of the list surely. It would mean expensive new trains vying with the NHS for space in the fully costed manifesto though!

 

[The Ham]

It'd be useful


Would he really interfere win the railways less if elections came round and the 'experienced railwaymen '/business studies graduates in charge said replacing Pacers is a waste of money and HS3/NPR/whatever needs to be abandoned in favour of another Crossrail? (Because Pacer replacement and the Northern Powerhouse, whatever comes of it, are both politically driven.)

I'm surprised he isn't committing to at least not buy future trains through a ROSCO. Buying existing trains off them might be pointless but if you believe privatisation has unnecessarily increased costs the ROSCOs are top of the list surely. It would mean expensive new trains vying with the NHS for space in the fully costed manifesto though!

Although if you set up a government owned ROSCO you should only need a one off lump sum to buy the trains and then they should pay for themselves over time (possibly even providing a small surplus to enable it to enlarge). As such the net cost should be £0.

The problem is that currently you couldn't be seen in providing government support to it, which would mean commercial rates of interest. Of course you could get around that by setting up a fund to invest in companies whose purpose was to create income for the government and using that to invest in a new ROSCO.

 

[LateThanNever]

We have interest rates to prevent inflation, making saving your money more attractive than spending it. Though I'm not sure you can point at recent events to definitively say creating money doesn't create inflation. Articles such as https://www.theregister.co.uk/2015/06/07/so_why_didnt_quantitative_easing_produce_huge_inflation/ argue it did create inflation, just that offset the massive deflationary pressure we were already under.

Except that interest rates don't prevent inflation - hence why the Bank of England is over target and the governor had to write to the Chancellor. It also takes no account of private debt, which the Bank of England has also warned about. People haven't got any money to save!

 

[JamesT]

Except that interest rates don't prevent inflation - hence why the Bank of England is over target and the governor had to write to the Chancellor. It also takes no account of private debt, which the Bank of England has also warned about. People haven't got any money to save!

High interest rates do help bring down inflation, you may have noticed we have extremely low rates currently whilst inflation as you say is over target. Various experts have been calling for a rise to combat inflation and also make borrowing less attractive.
Th danger being that putting the rates up and reducing borrowing might also choke off the growth in the economy along with the inflation, which is probably a worse state than where we are. There is money, that’s what’s fuelling the inflation.

 

[richieb1971]

House prices are the only thing inflated in my household. My house is worth 50k more than I paid 3 years ago. If you sort that problem out most of the other problems will sort themselves out. Raw materials, energy and food inflate at acceptable levels imho. If my mortgage was say 80k and me and the wife earned what we earn now we would be living large. The government needs to understand that bringing property prices down is our ticket a better future. If they keep rising housing will only be sold to selective people, infrastructure costs will be unbelievably high throughout all sectors and costs will generally just keep going up. There is a reason the minimum wage is going up and its not because the government like it that way.

If the cost of living goes down, everything else can go down with it within reason. If you upped interest rates at the moment you would pile a mountain of misery on this country. I think i'm lucky that I was able to pay off my Credit card this last pay day, there are some that will take years to pay it off.

 

[fowler9]

House prices are the only thing inflated in my household. My house is worth 50k more than I paid 3 years ago. If you sort that problem out most of the other problems will sort themselves out. Raw materials, energy and food inflate at acceptable levels imho. If my mortgage was say 80k and me and the wife earned what we earn now we would be living large. The government needs to understand that bringing property prices down is our ticket a better future. If they keep rising housing will only be sold to selective people, infrastructure costs will be unbelievably high throughout all sectors and costs will generally just keep going up. There is a reason the minimum wage is going up and its not because the government like it that way.

If the cost of living goes down, everything else can go down with it within reason. If you upped interest rates at the moment you would pile a mountain of misery on this country. I think i'm lucky that I was able to pay off my Credit card this last pay day, there are some that will take years to pay it off.

It isn't just the government that needs to realise that house prices need to come down. The whole of society does and property owners aren't going to like it. Years before the banking crash I was dealing with low cost endowment complaints where people had been told that not only would their mortgage be paid but they would have enough money left over for a round the world cruise. That is utterly ridiculous, it is completely unsustainable and at the end of the day someone has to loose. The only reason I am still in the house I am now is because my mum died and the life assurance part of the endowment paid out.

 

[B&I]

Our addiction to rising house prices mystifies me. Why do so few seem to realise that so few actually benefit from It?

 

[Railwaysceptic]

Our addiction to rising house prices mystifies me. Why do so few seem to realise that so few actually benefit from It?

I don't know. That has always bewildered me too. My house is worth about forty times what the seller got for it but I'm well aware that I gain no advantage from that. When I die, others will benefit.

 

[fowler9]

I don't know. That has always bewildered me too. My house is worth about forty times what the seller got for it but I'm well aware that I gain no advantage from that. When I die, others will benefit.

The house I live in was bought for £39000. It is now worth £300000. Wages haven't gone up that much in 30 years. Utterly ludicrous.