{Financing a C[ircles] A[nalysis &] S[ynthesis] Utopia (2) [continued]}[23rd March 1990]

[Redbook7:99][19900323:2330]{Financing a C[ircles] A[nalysis &] S[ynthesis] Utopia (2) [continued]}[23rd March 1990]

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(interrupted)

.2330

Looking back at p95* I am {pleased} to see how close** some of my guesses were – on the sums spent for Health, and Education; and by a curious co-incidence, the guessed total for basic living (furniture etc, energy, food and clothing) works out at almost exactly the same as the actual total for current spending on social security benefits. My estimate may well be too low to be practical; then again, it might well suffice simply to live on, in a very basic way.

The capital cost of building, estimated at [£]20bn,*** the major outstanding item, might be found from a reduction in defence spending by ¾ (ie within a European security framework) giving

[released from defence]	c£15,000****
existing housing expenditure	c£2,000
and extra taxation	c£3,000
	£20,000

(The figure of £10bn for transport, v. £4.5bn now, is simply a guess)

*ref [[Redbook7:95][19900321:1016e]{Financing a C[ircles] A[nalysis &] S[ynthesis] Utopia (1) [continued (5)]}[21st March 1990],ff] 95

**[See last previous entry]

***[per year; [Redbook7:95][19900321:1016e]{Financing a C[ircles] A[nalysis &] S[ynthesis] Utopia (1) [continued (5)]}[21st March 1990]]

****[million. This seems less plausible now than in the years following the fall of the Berlin Wall. Current practice for such capital expenditure would presumably be to borrow (at current historically rock-bottom interest rates) and expect to repay the loans and interest from rental on the property built. But under this plan there would be no rent, and we have already spread the capital cost of housing over 25 years,*** so that option makes little sense. Only finance out of taxation would seem possible. On the other hand, the cost envisaged*** took little or no account of existing housing stock (per last previous entry), much of which should be capable of upgrading at considerably lower cost (some of which would by incurred by private home-owners)]

[continues]

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