ACTION NEEDED AS AI CRASHES TO GET TO NET ZERO
The aim must be to adequately spend money such that it recycles within the community and repays Government debt
The gas guzzling, 5 yr chip replacement data hubs owing billions cannot repay interest costs on loans investment. The infrastructure and upkeep no longer pays workers to do the work and so huge spending into the economy stops. Stock markets around the world will fall..
Needed: Large amounts of Treasury electronic money creation and spending that will cause a big increase in employment and will repay within 20 yrs at low interest rates. Methods to make this easily fit Keynesian and Monetarist models to fund specific capital projects when refloating the economy.
Great British Energy is able to fund the infrastructure to take the place of heavy gas demands for electricity generation, storage and transmission. Overall net-zero production, but electricity costs to business and consumers falls over between 5 and 20 years.
- Houses changing hands might be demanded to be fully insulated within 4 years. This requires funding for the houses that are in the worst condition. Currently a house changes its value little if large amounts of work is carried out. This makes it appear not worthwhile to many people to do this work. However, if a house becomes insulated after this regulation then when it is sold the buyer does not have to do the work and hence its value will rise. Inflation is involved with this in that someone buying and selling maybe 10 years apart will find that it price has risen enough to cover insulation costs. See: Housingnetzero.com.
- Much of the capital investment can come from tax changes. Few know when they are going to die. There is £400bi in Self Invested Personal Pensions (SIPPs) half of which is invested abroad should the owner of a SIPP die with too much money (which a lot of them do) then this would be charged at 64% Inheritance Tax + Income tax (as of 2027). If the Treasury made stocks and shares in specific Net Zero projects then many would fund these. The shares they have at the moment were invested many years ago so this would act like new money for Public Offerings. See other pages on this web site.
- Much of the cost of a new house it the land it sits on. Major regulations that demand that all new houses must be well made well with PV cells on the roof well insulated and using heat pumps, will mean that all the bidders for building land can only bid a lower price. This is simply because the amount house buyers have to buy the house will not rise and the land would drop in value.