[email protected]: Vince Cable – Let’s make a virtue out of thrift again

Over at the Mail on Sunday, Lib Dem deputy leader Vince Cable ponders the question he is asked every day: why are profligate borrowers being rewarded by lower interest rates while thrifty savers suffer? Here’s an excerpt:

Interest rate cuts were unavoidable, though they have reached their limit and other policies are now more important – especially getting credit flowing to sound companies. Of course, it is necessary for the economy that people should spend, sensibly, since this also creates production and employment for others. There is a danger that fear is leading many people, and companies, to hoard excessive cash – behaviour which damages the economy. But it is also necessary to have a savings culture that enables people to put down a deposit on a house, pay for a comfortable retirement or provide for a rainy day. …

How can savers be helped and protected in this financial crisis? … I would concentrate instead on lifting low-income pensioners out of the tax net altogether. It is vital, too, to reform means-tested benefits, such as pension credits, which punish savers. We must raise the State pension to a decent level, linked to earnings, so that savers are not caught in the means test trap. … Most important of all is financial stability. Inflationary boom is as bad – or worse – for savers as deflationary bust. … While policy-makers throw untold billions of pounds at our crisis-hit economy, the plight of the saver must not be overlooked.

You can read the article in full by clicking here.

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

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.

If you are a member of the party, you can have the Lib Dem Logo appear next to your comments to show this. You must be registered for our forum and can then login on this public site with the same username and password.

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 ...?


Recent Comments

  • Barry Lofty
    [email protected] Thanks for the links especially the Age uk article, a charity that does impressive work for the elderly and I understand the recent cap is a great step in ...
  • Joe Bourke
    Barry, the care crisis is as much in domiciliary care as it is in residential homes. Patients in Sheffield are being treated in ambulances as beds are blocked ...
  • Geoff Reid
    Sensible comments from Bill le Breton as usual. The current Labour leader is sitting on a very painful fence in terms of his own party. He may gently suggest th...
  • Brad Barrows
    The most vulnerable group are those who have compromised immune systems but are unable to be vaccinated. They should not have to risk their lives by going to wo...
  • John Marriott
    Instead of pumping natural gas through the pipes, what about using hydrogen?...