we are the in crown

‘You are just…folklore now. You’ve missed the train, in fact, and you have only mischief left, and silly tricks.’

'I could kill you with a thought,’ said Nightshade with a sly look.

'Oh dear,’ said Tiffany, holding up a hand to halt the Feegles, each of whom wanted to be the one to get the first fist in.  'I hope you don’t do so.  It would be your last.’
—  Terry Pratchett, “The Shepherd’s Crown”
(Tiffany:  Watch out, we got a badass over here.)
“But The Queen Is Paying For The £370 Million Buckingham Palace Repairs Already“...Oh,no she’s not!

by Tim Worstall  , Forbes Magazine

Not understanding the economics of a matter is a dangerous place to start from if one then wants to talk about the economics of that matter. And so it is with this whining about the cost of repairs to Buckingham Palace and the demand that the Queen should be paying some of this cost, not taxpayers. The misunderstanding here is that the Queen will be paying for these repairs. Thus the demand that she does so is ever so slightly skew whiff, isn’t it? What people are forgetting about is the Crown Estate.

We’ve got the Labour Shadow Chancellor chuntering on about it:

The Queen should pay for the £370million refurbishment of Buckingham Palace, Labour demanded today.
Shadow Chancellor John McDonnell, a lifelong Republican, said the Palace must open its doors to more tourists if the taxpayer continues footing the bill.

It’s his colleague who manages to half get the point:

Clive Lewis, the shadow business secretary, told ITV’s Peston on Sunday this morning that he also believed the Queen “should contribute quite a bit” to the renovation fee.

He pointed out that Brenda is actually quite rich so, well, therefore she should pay more. And the ignorant among the populace are mobilising too:

Thousands of people have signed an online petition calling for Queen Elizabeth II to pay nearly 370 million pounds for repairs to Buckingham Palace from her own pocket instead of resorting to taxpayer funds.

That petition is here and this is the crucial part of the demand:

Buckingham Palace is about to be given a £369m refurbishment. Tax payers are paying for it. The Crown and its estates should be made to fund its own renovations.

And this is the little bit that is needed to understand why this is such an ignorant demand:

The work is being funded through an increase in the Sovereign Grant - the money given to the Queen which is based on profits of the Crown Estate.

So, just to walk through it. The Queen is indeed rich. However, her personal wealth is not all that large. Oh, sure, we’d all like to be that rich and so on but she’s not up there in the billionaire lists that this magazine compiles. The larger estimates of her wealth include the Crown Estate. And that is a big chunk of money. But it also doesn’t belong to Mrs. E Windsor. It belongs to the Monarch. Property within the Crown Estate can be sold, bought, mortgaged and all the usual stuff but the money cannot then flow out to said Mrs. E. Windsor.

Sure, it’s an odd arrangement and we probably wouldn’t design it this way if we were starting with a blank page but this is the way it works. So, that vast pile of billions produces a profit each year. A very healthy one as the Crown Estate accounts show:

We have delivered another year of market outperformance, enabling us to contribute a record £304.1 million to HM Treasury, outperforming our IPD bespoke benchmark, while the value of our property portfolio grew to a record £12 billion.

Note that those profits go to the Treasury. And the arrangement is that some portion of them then go back to the Queen as the Sovereign Grant. That Sovereign Grant paying for things like the expenses of being Queen and so on. This does not pay her personal expenses–she buys her morning cornflakes out of her own money just like everyone else. But should she have to buy dinner for Donald Trump as part of a State Dinner then it seems fair enough that she doesn’t have to buy the steak personally.

So, what is happening here is that there are expenses in repairing Buckingham Palace. And that is being funded from the profits of the Crown Estate. Sure, it’s all flowing through the Treasury but see above–if we were designing the system anew we probably wouldn’t do it this way.

The important point to grasp is that Buckingham Palace does not belong to Mrs. E. Windsor, it belongs to the Monarch. The Crown Estate does not belong to Mrs. E. Windsor, it belongs to the Monarch. And the profits on one part of the Monarch’s estate are being used to pay for the upkeep of another part of the Monarch’s estate.

That is, the Crown is already paying for these repairs to Buckingham Palace. Which is what makes demands that the Crown, or its estate, should pay for the repairs to Buckingham Palace so damn ignorant.

As at the top there, not understanding the economics of something is a dangerous place to start from when making demands about the economics of something.

Source:-
http://www.forbes.com/sites/timworstall/2016/11/21/but-the-queen-is-paying-for-the-370-million-buckingham-palace-repairs-already/#2be0e045500f

Comment

Forbes is a right wing magazine with the motto “The Capitalist Tool” so it is unsurprising that the article would attempt to confuse the issue and to patronise those who don’t fall sway to their capitalist agenda. Tim Worstall, who wrote the piece, is a horrid man who is anti-minimum wage among other repugnant things and he has a reputation for picking only the facts that suit his arguments. As is the case with this article where he tries to turn our focus on to the supposed ignorance of the people signing the petition and the politicians agreeing with them. His main premise is that ppl are idiots to demand the Crown pays for the repairs because it is in fact doing so through profits from the Crown Estate. But as he says himself normally these profits go to the Treasury who pay what Worstall dismissively describes as ‘some portion’ of them back to the Queen as a sovereign grant. That portion is 15% of the crown estate annual profits. What Worstall also doesn’t bother explaining properly is that to fund the repairs the Treasury will be paying out significantly more than this, a 66% increase. Ultimately, what the petition is saying still stands… and Worstall’s waffling is just that. The premise of the petition is that if the Queen herself gets an allowance of £50million each year and on top of this makes millions more each year from her assets - all of which she only has because she happened to be born into the Windsor family - then it really isn’t much to ask that she uses her own wealth for the expenses (so doesn’t take an increase in sovereign grant).  This is presented in the context of austerity and cuts to frontline services. It’s a pretty mild petition considering the estimate now is that the monarchy costs as much as £334m annually, the Queen has an estimated personal wealth of over £1billion but still took a 7% pay increase last year and is in line for another 6.5% increase this year, not to mention she’s exempt from inheritance tax… I could go on but I honestly can’t stomach spending more time today thinking about these preposterous thieves. Kathleen Friel

Source:- https://www.facebook.com/PsychoCalypso

Move on, leave, run away, escape this place… but don’t forget about me, about us, about this town. Always remember where you come from so you can appreciate how far you’ve come.
—  c.j.n.
You claim to love her, inside and out, but the only time you call her beautiful is when it’s 3 in the morning and I’ve already turned you down.
—  girls tell each other everything, c.j.n.

Monday 8:27am
I woke up with you on my mind.
You called me babe last night —
my heart is still pounding.

Tuesday 10:53pm
Today I realized we won’t work.
What we are is hurting her.
And I think she matters more to me than you do.

Wednesday 11:52pm
I broke things off with you today.
She barely said a word.
I’ve never regretted anything more than this.

Thursday 4:03pm
I shouldn’t have sent that message.
You shouldn’t have been so okay with receiving it.

Friday 9:57pm
I almost messaged you today.
I didn’t.

Saturday 8:49pm
I’m walking around town in search of alcohol.
They say that liquor numbs the pain of having a broken heart.
I want to put that to the test.

Sunday 2:32am
I heard you texted a girl you’ve never spoken to before.
I wonder if it’s because you’re trying to replace me.
I can’t help but wish you weren’t.
I thought I was irreplaceable.

—  a week with you on my mind, c.j.n.