Tuesday , September 29 2020
Home / Tim Worstall /Well, yes, obviously, what did anyone expect?

Well, yes, obviously, what did anyone expect?

Summary:
Despite the macroeconomic claims of that Modern Monetary Theory there is in fact no magic money tree. Something which BT is just proving again:Faced with a share price collapse and a gaping pension deficit, BT will pass the cost of better broadband onto customersObviously, what did anyone expect? The former state telecoms monopoly is to hike the price of its products by consumer prices index (CPI) inflation plus 3.9pc from March 31, raising hundreds of millions of pounds to help cover coronavirus costs and pay for broadband upgrades across the country....BT shares nonetheless remain close to their lowest ebb in more than a decade amid fears over the costs of ultra-fast “full fibre” broadband upgrades and an ongoing review of its multibillion-pound pensions black hole.Upgrading the

Topics:
Tim Worstall considers the following as important:

This could be interesting, too:

Mises Institute writes Our Fall Campaign Starts Today!

Ludwig Von Mises writes Why “Taxing the Rich” Doesn’t Make Us Better Off

Scott Sumner writes Stephen Williamson on NGDP level targeting

David Stockman writes Enough Already! Breonna Taylor’s Real Killer Was The Endlessly Evil War On Drugs

Despite the macroeconomic claims of that Modern Monetary Theory there is in fact no magic money tree. Something which BT is just proving again:

Faced with a share price collapse and a gaping pension deficit, BT will pass the cost of better broadband onto customers

Obviously, what did anyone expect?

The former state telecoms monopoly is to hike the price of its products by consumer prices index (CPI) inflation plus 3.9pc from March 31, raising hundreds of millions of pounds to help cover coronavirus costs and pay for broadband upgrades across the country.

...

BT shares nonetheless remain close to their lowest ebb in more than a decade amid fears over the costs of ultra-fast “full fibre” broadband upgrades and an ongoing review of its multibillion-pound pensions black hole.

Upgrading the broadband network is going to cost money, lots of it. Who is going to, who should, pay that bill? The people who use broadband, obviously. For there isn’t anyone else out there to do so. Even if we we start to insist that everyone should have broadband because it’s essential, therefore the taxpayer should pay. That’s still all - the users of broadband now being all of us by definition - paying for it, isn’t it?

We insist that consumers who upgrade from skirt steak to sirloin pay for it. We insist that those moving up from a £500 beater to a new car pay for it themselves. Moving from ASDL to fibre, get your wallet out. How could it be any other way?

Media enquiries: 07584 778207 (Call only, 24 hour)

Tim Worstall
Tim Worstall is a British-born writer and Senior Fellow of the Adam Smith Institute. Worstall is a regular contributor to Forbes and the Register. He has also written for the Guardian, the New York Times, PandoDaily, the Daily Telegraph blogs, the Times, and The Wall Street Journal. In 2010 his blog was listed as one of the top 100 UK political blogs by Total Politics.

Leave a Reply

Your email address will not be published. Required fields are marked *