Why save?
Adam Creighton 7:47pm
The Chancellor made much today about the government’s attempt to encourage saving. But with up to 40 per cent of people’s income taken away from them before they even get to see it (PAYE and NI) and another 18 and a half per cent of it taken away again when they spend it (VAT), what’s left to save with? It is little wonder that the household saving ratio is now under 4 per cent.
Meanwhile, all the big issues in life have progressively been taken out of our hands since the War: social security, health, education. (Darling even proudly announced today the building of 70,000 new homes—should the government really be in the business of building our homes?). Life in Brown’s Britain requires far less common sense and judgement than was the case one hundred years ago, when saving habits were an essential life skill, where decisions about health, education, and retirement were far more relevant and pressing, and ultimately contingent on the ability to save. The dramatic fall in the savings rates is proof that people will behave like infants if that’s how they are treated.
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mike
March 12th, 2008 8:04pm Report this commentBut taking all things into account I think we can say the day went well.
John Campbell
March 12th, 2008 8:15pm Report this commentI thougt that Darling was reading the speach for the first time. I am far from confident about the way he is handling the economy
Chuck Unsworth
March 12th, 2008 8:34pm Report this commentMike, speak for yourself. Who are 'we', then - apart from your fellow inmates, that is?
dexey
March 12th, 2008 9:01pm Report this commentWell, i'm alright.
I'm debt free, don't smoke, drink or drive a car.
Trumpeter Lanfried
March 12th, 2008 10:45pm Report this commentDo you pay council tax, dexey?
John Whitworth
March 13th, 2008 7:02am Report this commentHell, dexey, what Do you do?
David Mallory
March 13th, 2008 9:19am Report this commentIf you don't want to pay the 40 mper cent tax, you could try saving into a pension - tax relief right there waiting for you ...
salieri
March 13th, 2008 10:43am Report this commentYes, DM, you could. But look what has happened to all our pension funds - first savaged by a tax raid which Brown was expressly warned would be a disaster, and was, and now steadily dwindling as the stock market reflects not just global depression but also his own incessant, ill-advised and economically illiterate meddling. Even if he swings from a (metaphorical) lamppost in 2 years' time, some of us will have no pension left by then because of sub-prime government.
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