ALASTAIR CROOKE—The alternative way simply is to privatise these ‘public goods’ (as in the West), where they are provided at a financialized maximum cost – including interest rates, dividends, management fees, and corporate manipulations for financial gain.
‘It’ is then a truly different economic approach. To give one example: New York’s Second Avenue Subway extension cost $6 billion, or $2 billion per mile – the most expensive urban mass transit ever built. The average cost of underground subway lines outside the U.S. is $350 million a mile, or a sixth of New York’s cost.
How does this ‘it’ change everything? Well, just imagine for a moment: the biggest element in anyone’s budget today is housing at 40%, which simply reflects high house prices, based on a debt-fuelled market. Instead, imagine that proportion at 10% (as in China). Suppose too, you have low-cost public education. Well then, you are rid of education-led debt, and its interest cost. Suppose you have public healthcare, and low priced transport infrastructure. Then you would have the capacity to spend – It becomes a low-cost economy, and consequently it would grow.