tag:blogger.com,1999:blog-1141932539860553199.post4444961098136480852..comments2024-03-05T10:52:24.691+00:00Comments on Mark Wadsworth: Handing taxpayers' finest to the financial services sector, just for the heck of it.Mark Wadsworthhttp://www.blogger.com/profile/07733511175178098449noreply@blogger.comBlogger21125tag:blogger.com,1999:blog-1141932539860553199.post-63892801473528898682013-12-10T10:18:48.491+00:002013-12-10T10:18:48.491+00:00Searching for "government self-insurance"...Searching for "government self-insurance", the first thing that popped up was <a href="http://www.tbs-sct.gc.ca/pol/doc-eng.aspx?id=20930&section=text" rel="nofollow">this</a>, seems Canada has a coherent policy about it:<br /><br /><i>The Government of Canada, for the most part, underwrites its own risks and does not purchase insurance in the commercial insurance market.</i><br /><br />Kjhttps://www.blogger.com/profile/13530243002915410700noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-66909806844243753692013-12-10T10:13:36.817+00:002013-12-10T10:13:36.817+00:00Din, they can still make the accounts predictable ...<i><br />Din, they can still make the accounts predictable by putting £500 million to one side for "contingencies", in good years it runs a "surplus" and they use that up in bad years. Yer basic teeming and lading.</i><br /><br />They could in theory, but I suspect there are organisational reasons why public departments don´t do this, which has been hinted on before. TS has mentioned LA schools that do it. They are organisations that are quite closely controlled by those who set the budgets. NHS are "arms length", and would have to appropriate these funds, and defend why, and insurance premiums are perhaps "easier" to defend as actual costs, rather than an accounting set-aside. These state orgs in practice work for their own benefit, and do not see it as "one big pot". In that environment I think that a separate insurance scheme within the government, as D says, is the practical way to work around this thing.Kjhttps://www.blogger.com/profile/13530243002915410700noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-7066305988789177812013-12-10T09:14:06.119+00:002013-12-10T09:14:06.119+00:00@MW
Rather a conservative view of the extent to wh...@MW<br />Rather a conservative view of the extent to which the banks are able and the State should be more able (or willing)to create money out of thin air.<br />I will take a leaf out of KJ's book and use some quotes from people who know a lot "just to annoy" him.Murray Rothbard doyen of tough nut Austrian School "Banks make money by literally creating money out of thin air" So why can't the State cut out the middleman and create its own money out of thin air instead of taxing or borrowing (absurdly from the banks). "The Fed writes out a check for $10million which it gives to Shearson Lehman in exchange for $10million in US securities .Where does the Fed get the $10million to pay Shearson Lehman. It creates the money out of thin air." Given the existing capacity of governments to create thin air money , there is not much need for the redistributive element of LVT. Just a "hereon" tax to stop future land price inflation will suffice diverting new money to consumption/production.DBC Reedhttps://www.blogger.com/profile/17891849727783879145noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-69628129905755162832013-12-10T08:46:25.123+00:002013-12-10T08:46:25.123+00:00"if it turns out that a single govt departmen..."if it turns out that a single govt department pays a single penny in insurance premiums for anything at all then that would be highly depressing."<br /><br />No stupidity that involves handing public money to private enterprise is beyond this government (whatever the colour of its rosettes). I would not be surprised if the NHS isn't the thin end of a very fat wedge.Bayardhttps://www.blogger.com/profile/15211150959757982948noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-25035493707691355412013-12-09T20:20:50.586+00:002013-12-09T20:20:50.586+00:00D, I am sure that lots of govt departments self-in...D, I am sure that lots of govt departments self-insure, see TS' example about education authorities, but if it's even a single one of them that doesn't, then that is one too many.Mark Wadsworthhttps://www.blogger.com/profile/07733511175178098449noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-77481616739961750642013-12-09T20:08:11.144+00:002013-12-09T20:08:11.144+00:00A quick google search on "uk government self ...A quick google search on "uk government self insurance" suggests that certain parts of HMG already self-insure. Doesn't look like there is a comprehensive self-insurance policy in force though.Derekhttps://www.blogger.com/profile/06296053477905542366noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-10396328650966510282013-12-09T19:40:43.403+00:002013-12-09T19:40:43.403+00:00Oh, yes, depressing in the extreme. I can see why ...Oh, yes, depressing in the extreme. I can see why a particular government arm (with a miniscule budget) might want to pay for insurance in case it gets a claim against it which completely dwarfs its budget. But the whole of HMG and its pseudo-independent subsidiaries is far too big for it to make any sense to use third-party insurers.<br /><br />So, in principle, the government could set up its own insurance corporation, perhaps as a subsection of the Treasury. Then all its components, large and small, that need insurance, could insure through that. Derekhttps://www.blogger.com/profile/06296053477905542366noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-2262827363291666922013-12-09T18:24:15.046+00:002013-12-09T18:24:15.046+00:00D, that's another good example. Thinking on, i...D, that's another good example. Thinking on, if it turns out that a single govt department pays a single penny in insurance premiums for anything at all then that would be highly depressing.Mark Wadsworthhttps://www.blogger.com/profile/07733511175178098449noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-52237710170833823752013-12-09T17:04:34.865+00:002013-12-09T17:04:34.865+00:00When I travel on business for the Very Large Corpo...When I travel on business for the Very Large Corporation which employs me, I occasionally hire a car. I have been instructed not to take out any insurance when I do so because the VLC finds it cheaper to self-insure than to pay a third-party for insurance. <br /><br />If the private sector is doing this, the public sector should be doing it too.Derekhttps://www.blogger.com/profile/06296053477905542366noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-21745100795878835552013-12-09T15:32:54.757+00:002013-12-09T15:32:54.757+00:00TS, thanks for back up.
TSK, you've missed th...TS, thanks for back up.<br /><br />TSK, you've missed the point. From the point of view of injured child/parent, it is a catastrophe (and if they want to insure privately, fair enough), I was talking about it from the NHS' point of view.Mark Wadsworthhttps://www.blogger.com/profile/07733511175178098449noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-82367888133002057142013-12-09T11:37:48.436+00:002013-12-09T11:37:48.436+00:00For the NHS simple errors in child delivery are of...For the NHS simple errors in child delivery are often catastrophic and extremely expensive. <br /><br />Being deprived of oxygen, which is a common issue in this sort of accident, results in brain damage. However our standard of medicine is that despite that damage the child will likely survive, albeit disabled. The NHS is then obliged to pay for the care, adaptations to housing, loss of earnings etc etc for the child's life, so while he gets about £5000 for the actual injury he gets RPI adjusted damages of X million to cope with a life that has been wrecked before it started. <br /><br />In comparison to these, lopping off the wrong leg or doing in pensioners that weren't going to live much longer are small change. SumoKinghttps://www.blogger.com/profile/02018901303892114091noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-32551565428000788452013-12-09T11:08:39.273+00:002013-12-09T11:08:39.273+00:00That's a very good point about insurance.
I d...That's a very good point about insurance.<br /><br />I don't know if it's still the case, but it used to be that schools (as in the buildings) weren't insured. Across an LEA, it was cheaper just to pay for any damage if you got a fire or struck by lightning.Tim Almondhttps://www.blogger.com/profile/13369256383976094670noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-23911580069055389902013-12-09T07:43:59.088+00:002013-12-09T07:43:59.088+00:00Kj, how we encourage NHS staff to improve standard...Kj, how we encourage NHS staff to improve standards and minimise afoul ups is a separate topic. <br /><br />B, yes, they've sold the nicer stuff to the wealthier tenants, now they are selling the crappier stuff to poorer tenants. <br /><br />L, I know how you feel. <br /><br />DBC, yes of course, and funding was never a constraint on the amount of social housing being built - it is not a cost, it is a source of income. <br /><br />Din, they can still make the accounts predictable by putting £500 million to one side for "contingencies", in good years it runs a "surplus" and they use that up in bad years. Yer basic teeming and lading.Mark Wadsworthhttps://www.blogger.com/profile/07733511175178098449noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-53987831163379969192013-12-08T21:26:41.545+00:002013-12-08T21:26:41.545+00:00maybe the NHS does that to make department account...maybe the NHS does that to make department accounts predictableDinerohttps://www.blogger.com/profile/14632385731642361211noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-76470234227993320792013-12-08T20:14:05.635+00:002013-12-08T20:14:05.635+00:00And if for budget reasons there was a problem with...And if for budget reasons there was a problem with self insuring they could probably borrow the money after the event, as they are the NHS.<br /><br />Exibit 2<br /><br /> and it would not even be a novelty, as rent to buy schemes allready exist.<br />On the on the other hand if they sold it in instalments what would be the status of the ownership be during the transaction period.Dinerohttps://www.blogger.com/profile/14632385731642361211noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-79687464394505868252013-12-08T19:12:35.868+00:002013-12-08T19:12:35.868+00:00For Gawds sake man , you don't expect us to pa...For Gawds sake man , you don't expect us to pay for them votes , do you?Voteforhttps://www.blogger.com/profile/09232084956094725089noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-2269458289536684432013-12-08T18:21:33.734+00:002013-12-08T18:21:33.734+00:00@MW Margaret Thatcher in her evil way made sure th...@MW Margaret Thatcher in her evil way made sure the takings from sold council houses could not be used to construct new houses. DBC Reedhttps://www.blogger.com/profile/17891849727783879145noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-49889359983272042602013-12-08T18:07:24.015+00:002013-12-08T18:07:24.015+00:00My first reaction to all this is 'Oh no, not a...My first reaction to all this is 'Oh no, not again'.<br /><br />I was going to make a longer comment, but do you know what? I can no longer be arsed. The perenniel stupidity of these people just wears you down - and it's nearly Christmas, and really, we don't need this do we?Lolahttps://www.blogger.com/profile/04586735342675041312noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-80182091760166948302013-12-08T15:59:36.483+00:002013-12-08T15:59:36.483+00:00"The government will further support Right to..."The government will further support Right to Buy by introducing Right to Buy Agents to help buyers complete their home purchase,"<br /><br />What that says to me is "the gov't is desperate for some of the electoral magic that RTB has provided in the past, but the richer council tenants have all bought their houses years ago, so they are employing a team of dodgy salesmen fresh from selling payment protection insurance to sell the remaining tenants something they can't afford."Bayardhttps://www.blogger.com/profile/15211150959757982948noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-84200697529128391472013-12-08T15:46:07.948+00:002013-12-08T15:46:07.948+00:00between government and Financebetween government and FinanceKjhttps://www.blogger.com/profile/13530243002915410700noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-80702209905147126412013-12-08T15:45:31.232+00:002013-12-08T15:45:31.232+00:00Maybe the NHS practice is to make malpractice clai...Maybe the NHS practice is to make malpractice claims extra expensive as to deter them from happening... err... Even small businesses do this at the same scale, with accounting for warranties etc.. Once again, the loving relationship between government and financing is on parade.Kjhttps://www.blogger.com/profile/13530243002915410700noreply@blogger.com