Friday, September 18, 2009
Unfortunately Roy Castle is in the same state as the UK economy. The government can only spend the "real" saving rate, i.e. their borrowing depends on blowing deferred consumption by panicked UK denizens and foolhardy foreigners. If the economy does pick up then consumption would of course need to be switched to those who deferred earlier. Will the confiscated consumption come from a) unemployed public sector workers b) anybody who works c) borrowers d) savers ?