Tuesday, 11 August 2009

The Drift to Thrift

That's the new economic paradigm. Give people some money and all they'll do is save it, which doesn't help the economy - so there's no point giving them any money. Better to let the government spent it for you.

Well, that's New Labour's thinking anyway. Of course savings do enter the economy, but not in a flashy new car, bigger house, foreign holiday kind of a way. No, one man's savings are another man's investment capital, business loan, or equity purchase. So savings are good. But they are not good for a politician who wants to win an election within 12 months. Savings are long-term good. Politics is always short-term.

1 comment:

Anonymous said...

BNP website appears to be down - what a surprise that it's during RWB weekend, eh?!