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Anorak | Pension Funds To The Rescue! Raiding Private Capital To Build Public Assets

Pension Funds To The Rescue! Raiding Private Capital To Build Public Assets

by | 14th, November 2011

PENSION funds to the rescue! This is being greeted with glee over in leftyland :

Ministers are finalising a radical plan to boost investment in UK infrastructure and stimulate the economy, with proposals to pool the vast assets held in British pension funds and use them to back an ambitious programme of road and house building.

Pension and insurance funds are to be encouraged to invest up to £50bn in improving infrastructure, including private and social housing, power stations, super-fast broadband and motorway toll roads.

Hurrah!

Those huge pots of private capital are to be mobilised to build the public assets and infrastructure we need! Take that capitalist bastards!

This isn’t of course, what is happening. What actually is happening is that the scene is being set for the privatisation of that public infrastructure. Allow me to explain.

We’ve got something called “public goods”. They’re nice things to have, take a road for example. Our problem is that roads are free at the point of use: there’s no way to charge someone for using it. So those filthy capitalist bastards, meanies that they are, won’t build roads for us to use for free. Because they cannot get their money back.

Now, we could just

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Posted: 14th, November 2011 | In: Key Posts, Money Comment (1) | Follow the Comments on our RSS feed: RSS 2.0 | TrackBack | Permalink