Grounds for optimism?

bigadaj

Ballard wrote: »

But in these times of austerity we are told that there's no money to spare so why spend some on those who need it least?

I'm not sure they would agree that they need it least.

We still have multi millionaires paying single figure tax rates, most would suggest these are a less deserving lot of any largesse.

Many of those savers will be pre baby boomers who have saved for years, always been averse to benefits and been happy with savings at low interest rates because they are risk averse and see the stock market as gambling.

The logical course of action for such people now, with possibly low tens of thousands in savings, is to spend their savings now, and give that many will be in basic state lens ions rely in benefit top ups to make up the shortfall, this is what most would recommend.

The net result would of course be a much larger burden on the government in the payment of those benefits, leading to larger deficits, borrowing etc etc