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smiley

Housebuilding To Pay Off The National Debt?

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The UK national debt is roughly £1,470 billion, and increasing by about £44 bn per year - the annual budget deficit.

However, building a house costs about £50k, and they sell for £200k.

So if the government simply got into the business of house-building, it could build about ten million (total cost: £500 bn), and could sell them for about 2,000 bn, making enough money to pay off the entire national debt.

And, as a bonus, an end to the housing crisis.

Problem solved.

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The UK national debt is roughly £1,470 billion, and increasing by about £44 bn per year - the annual budget deficit.

However, building a house costs about £50k, and they sell for £200k.

So if the government simply got into the business of house-building, it could build about ten million (total cost: £500 bn), and could sell them for about 2,000 bn, making enough money to pay off the entire national debt.

And, as a bonus, an end to the housing crisis.

Problem solved.

No need to pay off the national debt. Deficits barely matter. Housing should be less than 200k average. Your 50k doesn't include land costs.

Other than that, it's a winner

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Not sure about paying off national debt, but the local council up my way seems to be refusing most planning applicationms, all the while promoting 500 homes on farmland...land the council conveniently owns. I figure its the only way they think they can actually get their fat cat pensions. The tenant farmers get kinda screwed though.

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The UK national debt is roughly £1,470 billion, and increasing by about £44 bn per year - the annual budget deficit.

However, building a house costs about £50k, and they sell for £200k.

So if the government simply got into the business of house-building, it could build about ten million (total cost: £500 bn), and could sell them for about 2,000 bn, making enough money to pay off the entire national debt.

And, as a bonus, an end to the housing crisis.

Problem solved.

Smiley,

The Structural deficit is still £97 billion pa, not £44 bn. Even £97 bn is a fiddled figure:

The Govt is still quietly taking QE money in the form of APF which is interest on the debt the Bank of England bought back with the phoney money being QE.

Last month the Govt received £4.1 bn of this imaginary money said to be PSB neutral - so invented on the bank of England computer and sent to the Treasury I assume.

The amount of income tax taken in the last year increased by only £200 million, when employment grew by half a million people and the govt claims wages are rising faster than inflation - it's not everyone's experience. Most people feel they are getting poorer, but a little more slowly.

The Autumn statement grossly exaggerated the improvements in the economy. The key claim that the Govt has cut the deficit in half since 2010 is not entirely true. The Chancellor has swapped to using a measure of debt as a percentage of GDP instead of looking at the actual fall in month to month debt. Even then if we look at the last year, the debt expressed this way has risen from 77.7% to 79.5% of GDP.

No wonder Labour has opened up a 5 point poll lead, even though Balls and Miliband have no clue. Smoke n Mirrors rule. I will Vote UKIP and have the nature of politics changed, along with saving £9 bn and rising, on EU membership , and reducing overseas aid by about £9 bn pa - and so much else.....

http://www.ons.gov.uk/ons/dcp171778_386141.pdf see pages 8 & 9

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The UK national debt is roughly £1,470 billion, and increasing by about £44 bn per year - the annual budget deficit.

However, building a house costs about £50k, and they sell for £200k.

So if the government simply got into the business of house-building, it could build about ten million (total cost: £500 bn), and could sell them for about 2,000 bn, making enough money to pay off the entire national debt.

And, as a bonus, an end to the housing crisis.

Problem solved.

What about the price of the land?

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