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Flatlining GDP is Our Fault
GeorgeHowell
Posts: 2,739 Forumite
The slump is our fault -- the consumers.
We are saving rather than spending. Saving percent of income has been around 7% for 2 or 3 years compared with around 2% prior to that.
The money is there, people don't want to go out and spend enough. By and large business now says that money to invest is there, but the market future is too uncertain.
Time for people to put their money where their mouth is, and put that 5% back into consumer spending. Stop holding back in sheep-like fashion and book the holiday, buy the new car, have the nights out, upgrade the iPhone, get a new outfit, whatever -- but spend it. If everybody did so it would make a big difference.
No good blaming everyone else when one of the major causes is US !
We are saving rather than spending. Saving percent of income has been around 7% for 2 or 3 years compared with around 2% prior to that.
The money is there, people don't want to go out and spend enough. By and large business now says that money to invest is there, but the market future is too uncertain.
Time for people to put their money where their mouth is, and put that 5% back into consumer spending. Stop holding back in sheep-like fashion and book the holiday, buy the new car, have the nights out, upgrade the iPhone, get a new outfit, whatever -- but spend it. If everybody did so it would make a big difference.
No good blaming everyone else when one of the major causes is US !
No-one would remember the Good Samaritan if he'd only had good intentions. He had money as well.
The problem with socialism is that eventually you run out of other people's money.
Margaret Thatcher
The problem with socialism is that eventually you run out of other people's money.
Margaret Thatcher
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Comments
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My economics A level taught me that if people are saving too much then interest rates are too high.This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0
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My economics A level taught me that if people are saving too much then interest rates are too high.
That's one side of the equation but it ignores that fact that mortgage interest is such a big proportion of many household's outgoings, and the low rates there are creating the ability to save more. Sure saving more when savings interest rates are so low could be described as irrational. But that's why economics is so difficult -- people are not always rational.
That is my point -- it's irrational to be saving 5% more when rates are so low -- so go out and spend it.No-one would remember the Good Samaritan if he'd only had good intentions. He had money as well.
The problem with socialism is that eventually you run out of other people's money.
Margaret Thatcher0 -
Hypocrite. Are young people supposed to pay exorbitant prices for houses or save, or deleverage?GeorgeHowell wrote: »The slump is our fault -- the consumers.
We are saving rather than spending. Saving percent of income has been around 7% for 2 or 3 years compared with around 2% prior to that.
The money is there, people don't want to go out and spend enough. By and large business now says that money to invest is there, but the market future is too uncertain.
Time for people to put their money where their mouth is, and put that 5% back into consumer spending. Stop holding back in sheep-like fashion and book the holiday, buy the new car, have the nights out, upgrade the iPhone, get a new outfit, whatever -- but spend it. If everybody did so it would make a big difference.
No good blaming everyone else when one of the major causes is US !0 -
We ain't been saving for years...and you can forget its all Labours fault as savings ratios were a lot higher decades ago...:D
http://www.economicshelp.org/blog/848/economics/savings-ratio-uk/0 -
Look at the Chinese the whole world needs them to spend yet the lower the interest rate the more they save! Their economy is a car crash waiting to happen unless they start to rely on something else other than exporting. I read their current GDP is almost 50% made up of building homes and road infrastructure but when there are no more homes or roads to build (and they already have an oversupply with some cities being ghost towns), what are the electricians, brickies plumbers etc do? They need a service sector which helps importers and gives them jobs in a service sector.0
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Look at the Chinese the whole world needs them to spend yet the lower the interest rate the more they save! Their economy is a car crash waiting to happen unless they start to rely on something else other than exporting. I read their current GDP is almost 50% made up of building homes and road infrastructure but when there are no more homes or roads to build (and they already have an oversupply with some cities being ghost towns), what are the electricians, brickies plumbers etc do? They need a service sector which helps importers and gives them jobs in a service sector.
Are you taking the p155?0 -
Err nope, how long do you think china can hold wages for workers in the export business down for? What do you think will happen when the workers want/desire the goods they are sending to us (the West?), will they continue to be happy with low wages? China needs to create a consumer society but the Chinese don't do debt they save.0
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Err nope, how long do you think china can hold wages for workers in the export business down for? What do you think will happen when the workers want/desire the goods they are sending to us (the West?), will they continue to be happy with low wages? China needs to create a consumer society but the Chinese don't do debt they save.
It is possible to spend money that you've saved rather than borowed.
You do know that don't you?0 -
It is possible to spend money that you've saved rather than borowed.
You do know that don't you?
Have it your way China is fine they can just keep exporting and paying their workers low wages. Those houses, roads, airports don't need to be used it all counts towards GDP they will just carry on forever?
Or Look up Robert Peston 'is China the solution or the next big problem'
GL0
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