[email protected]: Vince Cable – Confiscating savings from the poor is both stupid and cruel

The Independent today has an op-ed piece from Vince Cable. You can read it in full here, but here’s an excerpt:

As it became clear that we faced a serious recession we Liberal Democrats broke the taboo of the political and economic Establishment by calling on the Monetary Policy Committee to cut interest rates by 2 per cent initially. Our call was treated like a rude noise in church. But it has happened – and more – and we now have a two per cent base rate.

The danger now is of deepening recession mutating into deflation and a downward spiral of falling prices and wages. The Bank of England have to minimise that risk. They should cut further today and keep cutting: the classic response favoured by monetarists and Keynesians alike.

The base rate is, however, becoming a secondary concern in banking and monetary policy. The issue is now the supply of credit more than the price. Despite the injection of capital the banks are on strike…

The real scandal is the penal treatment of savings under the means-tested benefit and pension credit system. The Government, in effect, is confiscating savings from the poor and thereby destroying their incentive to save: this is a stupid and cruel policy.

Read more by or more about or .
This entry was posted in LibLink.
Advert

One Comment

  • What is ‘op-ed’? I think I know what it might mean but it’s a bit clunky?? :@)

Post a Comment

Lib Dem Voice welcomes comments from everyone but we ask you to be polite, to be on topic and to be who you say you are. You can read our comments policy in full here. Please respect it and all readers of the site.

To have your photo next to your comment please signup your email address with Gravatar.

Your email is never published. Required fields are marked *

*
*
Please complete the name of this site, Liberal Democrat ...?

Advert



Recent Comments

  • Catherine Jane Crosland
    Humphrey, It seems rather harsh to say "the whole party is rotten" (of the conservatives). Surely there are plenty of decent, honourable conservatives, who may ...
  • Humphrey Hawksley
    Very good questions, Catherine Jane Crossland. I am sure that Labour under Keir Starmer would be an improvement. I am not certain a successor to Johnson would ...
  • David Evans
    Ronnie was a great liberal, a great man, and a great MP. He was probably a great Lord as well, but to those who knew him, the title Lord barely registered as i...
  • Gordon
    A lot to like here but some differences. For one, money emphatically IS fuel. (It’s also a lubricant but that’s less interesting.) For example, the ...
  • Judy Abel
    I remember Erlend from the time when I worked for Simon Hughes in his Constituency Office in Bermondsey. Erlend was managing the Lib Dems Campaigns Office downs...