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Abject nonsense again

As I have long argued, pension funds could be an ideal source of funding for the green transition that we need, but there are conditions attached to that suggestion.

First, the government has to create the investment opportunities.

Second, the opportunity has to have an income stream attached to it (which is not hard: it’s either a rent, or a revenue e.g. from energy, or a lease from a government department).

Third, the opportunity has to be wrapped up in a bond with a government guarantee attached to it, which then reduces the cost.

Fourth, there has to be compulsion. If tax relief on contributions to funds was linked to compulsorily investing 25% of all new funds in new green activity in the UK economy most of that money would flow into government-related activity.

If it’s a government created opportuinity, with a government guarantee, with an income, then why does there need to be compulsion? Surely capitalists would fall over themselves to buy such things?

13 thoughts on “Abject nonsense again”

  1. Ah yes. I see that Arrival, the electric van maker are down about 99%. Tesla just announced some horrible results and operating on margins similar to GM, even with gov throwing money at them. How are Podpoint doing? Down about 90% compared to 2 years ago. EVs are generally flat in sales except where the state is interfering (like cheaper company cars, so lots of people are having an electric company car instead of paying 40% tax).

    Income stream? What fucking income stream?

  2. Surely capitalists would fall over themselves to buy such things?

    The clue as to why not is probably here: or a lease from a government department.

    In case of a dispute between the capitalist and the government, by whom and where would any adjudication be done?

    Captain Potato is so infatuated with the state that he will never come up with anything that doesn’t have the fat officious thumb of the state pressing down on the scales.

  3. Martin Near The M25

    I think Arthur C. Clarke once wrote that any sufficiently tedious article by Spud is indistinguishable from a demand for all your money.

  4. There’s nothing really new about this. I can remember Bill Clinton almost 30 years ago musing about whether pension money could be directed into things he favored. Pots of cash attract hyenas, hence the need to be vigilant about protecting such pots.

  5. Let’s be very clear – this is about him wanting to steal pensions – especially as MMT begins to collapse and there is no alternative to massive retrenchment, which will lead to huge cuts in academia and the public sector and hopefully him losing several stone and needing a soup kitchen.

    He created the mess almost single handedly. However, unfortunately he has f^^&ed it up for everyone else as well.

  6. Jonathan, the tweet’s proposed community notes is spot on.

    “Richard Murphy is not a political economist. He is an accountant. On his website he describes himself as professor of accounting practice at Sheffield University. He comments on political events but has no academic expertise in this area.”

  7. If the tax relief on pensions was conditional on investing 25% of the gross in Murphy-designed “Green” investment opportunities then most intelligent people would forego the tax relief so that 100% of their net pension contributions could be invested sensibly, rather than have 6.25% of their net contribution plus all the HMRC donation wasted
    *That* is why he wants compulsion.

  8. “Fourth, there has to be compulsion. If tax relief on contributions to funds was linked to compulsorily investing 25% of all new funds in new green activity in the UK economy most of that money would flow into government-related activity.”

    And there we are. All of the previous points are negated by this one. I know he’s ignored in these parts by everyone, but the above is reason enough for everyone else to ignore him too.

  9. @Td “Pots of cash attract hyenas” . I believe hyenas work in packs. The potato can’t work with anyone without falling out with them, so I’d suggest he’s more like a solitary shark trying to sniff out blood.

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